Thorofare Capital has funded $2,294,455 in 1st mortgage financing for the refinance of Crestwood Condominums, an 18-building, 68,026 square foot condominium property consisting of 89 units located in Des Plaines, Illinois. The borrower used proceeds to i) refinance the 1st mortgage loan on the property, ii) pay down an existing loan with $700,000 for Clarion Airport Hotel, located at 1471 East Brooks Road, Memphis TN 38116, and iii) hold an evergreen interest reserve of $125,621 to support debt service for the first six months of the loan.

The business plan is to renovate eight unfinished units out of operating income and lease units to market occupancy and rents. Upon stabilization of the property, the borrower anticipates refinancing with a local community bank.

The borrower originally owned 29 “free and clear” units in the property before acquiring an additional 60 units. The acquisition of the 29 units took place over time between 2009 and 2010, during which some of the property was bank owned and/or highly distressed. The borrower fully renovated the existing 29 units, which he subsequently pledged as collateral for the acquisition of the 60 additional units. The borrower acquired the additional 60 units from Blue Valley Apartments, Inc. through a bank auction sale for $1,375,500 in October 2012 with debt financing from Thorofare.

The borrower operated all of these units as “for rent” apartments; however, each individual unit was assigned a Property Identification Number allowing for the units to be sold as condos. The borrower anticipated completing renovation and bringing existing occupancy from 75% to market occupancy of 96%. The borrower anticipates maintaining average market rents at the property of $798/unit. The property is 86.7% occupied and produces a net operating income of $234,170.