Thorofare Capital has funded a $13.25 million floating-rate commercial mortgage for the recapitalization of The King Street Portfolio, a 41,545 SF mixed-use portfolio located in Downtown Charleston, South Carolina. The sponsor’s business plan is to bring both residential and retail rents to market upon lease rollover and/or expiration.

The non-recourse three-year, floating-rate loan does not require amortization during the initial term and includes a TI/LC Reserve for re-tenanting the ground floor retail suites.

The Portfolio consists of four, three-story buildings with a combined rentable area of 41,545 square feet. Three of the buildings are inter-connected fronting King Street. A fourth building is freestanding at the corner of King Street and Burns Lane. The properties were built at different times between 1800 through 1890, and consist of student-housing apartments over street-level retail. There are a total of 36 residential units and six retail suites comprising 12,166 square feet. At the time of closing, the property was 100% leased.

The College of Charleston is adjacent to the Portfolio and has an enrollment of approximately 12,000 students, the majority of whom live off-campus, which is a major demand driver for the residential apartments. King Street, the major shopping thoroughfare in downtown Charleston, is lined with numerous independent boutiques, national retailers (Apple Store, Williams-Sonoma, J. Crew, Gucci, Sperry, and Victoria’s Secret), and the city’s upscale restaurants and cafes. The Portfolio is also adjacent to Marion Square, a municipal park in the center of Charleston.

The Sponsor is a joint venture between a D.C.-based private investment firm and Detroit-based fully integrated real estate owner, operator, developer, manager, and investor who has overseen and developed a real estate portfolio consisting of nearly 2,000,000 square feet of retail and office space, over 15,000 apartment units, and 2,400 housing lots.