Thorofare Capital has funded a $14.9 million floating rate commercial mortgage for the acquisition and renovation of two multifamily buildings, totaling 63-units in South Pasadena, California. The portfolio is situated near the intersection of South Fair Oaks Avenue and the Pasadena 110 Freeway, minutes away from transportation, schools, shopping, and restaurants. With an attractive unit mix, which provides for a relatively high number of larger two bedroom units, the buildings are not subject to rent control and are within a sought-after South Pasadena public school district.

The capitalization facility includes an approximately $2 million CapEx facility for planned upgrades and deferred maintenance remediation. Including gated entry, the improvements consist of a three and four-story, two building apartment complex with two pools, on-site laundry facilities and a combination of tuck-under parking, car ports, and surface parking. The sponsor plans to take advantage of the significant upside in potential rent through renovations and rent increases. The strategically located buildings presented a rare opportunity in a highly desirable rental market where multifamily properties seldom trade. The non-recourse, floating-rate loan carries an initial term of two years with extension options.

The Sponsor is a Los Angeles-based full service commercial real estate investment and management company that owns a significant portfolio of retail, industrial and multifamily properties across the United States. The Principal of the Sponsor has handled in excess of $1,000,000,000 in real estate sale and financing transactions on behalf of his clients, and currently owns and manages a portfolio of commercial properties with a value in excess of $100,000,000.