Thorofare Capital has funded a $3,530,000 fixed-rate bridge loan for the acquisition, renovation and re-tenanting of a 4-story, 16-unit multifamily property in Brooklyn, New York. The sponsor plans to complete nearly $100K/unit of “gut” renovations and lease the units at market-oriented rents.

Given the nature of the business plan, Thorofare structured reserves for renovations, operating deficits and debt service while the property undergoes repositioning. The one year, interest-only bridge loan sizing was based on both the ‘as is’ and ‘as complete’ values, including more than $1.5 million of reserves.

The area is undergoing improvement with primarily residential development. The residential development is being augmented with retail and commercial uses as well. The neighborhoods surrounding the property include Bushwick, Bedford-Stuyvesant, and Flatbush, which have all experienced significant redevelopment over the past decade, as residents have been priced out of the gentrified neighborhoods of Williamsburg and Park Slope.