Thorofare Capital has funded a $15.3 million fixed-rate bridge loan for the renovation and lease-up of seven contiguous properties totaling 57,030 square feet, situated between 12th and 13th street bordering the main retail corridor along 3rd Avenue. The proposed subject property will be a mixed-use, creative office over retail commercial building within the Gowanus neighborhood, which is considered within the North Brooklyn submarket.

The capitalization facility replaces the prior senior debt, supports a $3.53 million renovation and reserves for leasing and carry costs. The sponsor pre-leased 43% of the project to The Yard, New York City’s premier luxury office space collective offering private offices, co-working and innovative amenities for growing businesses.

The non-recourse, fixed rate loan carries an initial term of 18 months and one extension option of six months. The interest-only loan structure includes a debt service reserve to fund operating deficits and interest payments during the renovation and lease-up period.

The sponsor is a New York-based private real estate investor focused on redevelopment and adaptive reuse projects throughout gentrifying submarkets of Brooklyn.