Thorofare Capital has funded a $14,500,000 fixed-rate bridge loan for the leasehold acquisition and renovation of the proposed Palihotel Seattle, a 96-key boutique hotel located in downtown Seattle, Washington. Closing of the loan commitment was simultaneous with the sponsor’s acquisition of the leasehold improvements.

The Palihotel Seattle is located one block from Pike Place Market, which is a public market overlooking the Elliott Bay waterfront; it is a major tourism destination as well as one of the oldest public farmers’ markets in the US. The hotel will benefit from ample retail frontage along 1st Avenue, which experiences high volumes of both foot and auto traffic. The location provides convenient access to the financial center, Amazon.com (HQ), Lake Union, the Puget Sound Central Waterfront, and the CBD’s retail core.

The improvements currently consist of a four-story, 99-room SRO with ground floor retail. The property was built in 1900 and has frontage along Pine Street and frontage along First Avenue. The project launches Paligroup’s expansion outside of Southern California, where it currently manages the Palihouse West Hollywood, Palihouse Santa Monica, Palihotel Westwood, Palihotel Culver City, and Palihotel Melrose.

Thorofare worked through a complex historic tax credit structure and the CapEx Holdback includes a future funding facility that is commensurate with the Sponsor’s renovation timeline. The sponsor has been working with JTM Construction and Gensler as its architect, utilizing best in class vendors for this high profile project. The financing is interest-only and includes an extension option for seasoning of operations upon grand opening, which is in line with the sponsor’s plan to refinance upon stabilization.