Thorofare Capital has funded $4,350,000 in acquisition financing for a 137,112 RSF Kmart anchored retail center known as the Rivergate Shopping Center.

The Subject Property, which was 80% occupied, was being sold by US Bank. Since the borrower put the Subject Property under contract in early October he had negotiated a lease extension for Kmart’s 84,180 RSF lease for five years from 4/1/2012 through 3/31/2017. The Subject Property had a conservative in place NOI of $440,000. The borrower was convinced the property had been significantly mismanaged by the bank and the NOI would increase by over $100,000 annually through a reduction in expenses once he began to manage the property. In addition, there was a new lease out for signature. The loan was being personally guaranteed by the borrower, Ethan Conrad, with a net worth in excess of $170,000,000. Based on the In-Place NOI, the property’s debt yield was 10%.