Thorofare Capital has recently funded the acquisition of a $12,645,000 UPB non-performing note portfolio secured by two office properties located in Pennington NJ, a two-property 172-unit multifamily portfolio located in Gadsden, AL, and a 104-unit multifamily community located in North Charleston, SC. Thorofare worked in tandem with the Los Angeles-based sponsor to streamline due diligence and closed transaction closed in just two weeks from application. The flexible note financing structure allowed for release pricing on each asset and minimum yield protection, which enables the sponsor to maximize IRR’s at the asset level based on separate exits. This note financing opportunity provided Thorofare an attractive loan basis and superior risk adjusted returns with strong collateral values. The sponsor plans on accessing fee-simple ownership through workouts and subsequently adding value at the properties through capital improvements and leasing prior to refinancing or selling each property individually.

One of the senior secured delinquent loans includes two office properties totaling 29,655 square feet, located in Pennington, NJ. The properties consist of a four building office complex commonly known as Pennington Point East and Pennington Point West. Situated on a 2.96-acre site, Pennington Point East is a two building, 15,010 square foot, two-story multi-tenant suburban office complex located on Route 31 North. Situated on a 3.13-acre site, Pennington Point West is a two-building 14,760-square-foot, two-story multi-tenant office complex located on Tree Farm Road. The 2000-built complex was 71% occupied by a total of 12 tenants at closing. The sponsor plans on taking fee-simple ownership through a deed in lieu and marketing the remaining vacant suites to local and regional tenants. The unpaid loan balance was $3,736,222 at the time of sale.

Additional collateral includes two delinquent loans secured by two stabilized multifamily properties located in Gadsden, AL, commonly known as Pine Ridge Apartments and Williamsburg Apartments. The sponsor purchased the loans and subsequently secured fee-simple ownership through a court-approved deed in lieu in bankruptcy proceeding. The sponsor has since taken over asset management and has listed both properties for sale with Hendricks-Berkadia. Pine Ridge Apartments is a 91%-occupied, 1979-built multifamily community comprised of 13 garden-style buildings containing 112 apartment units. At closing, the unpaid principal balance was $2,735,226. Williamsburg Apartments consists of a 10-building, 60-unit apartment building referred to as Williamsburg Apartments. The 1973-built property was 90% occupied at closing. At closing, the unpaid principal balance was $2,185,406.

The final asset in the distressed debt portfolio is a delinquent loan secured by Collins Park Apartments, a 13-building, 104-unit multifamily community located on Dewsbury Lane in North Charleston, SC. The 1983-built property was 92% occupied at closing. The loan was originated in September 2003 and was transferred to special servicing in September 2011, with the last payment being made in November 2011. At closing, the unpaid principal loan balance was $3,988,260.