Thorofare Capital has funded a $5,361,000 bridge loan for the acquisition and improvement of 1144 West Fulton Market Street in the Fulton Market neighborhood within the West Loop area of Chicago, Illinois. 1144 West Fulton Market consist of a creative office property and 32 parking lot spaces located at 351 North May Street. The “stretch” senior financing, provided by Thorofare, included a $4,557,000 A-note, and an $804,000 B-note amounting to $5,361,000, which represents 76% of the total capital stack. Thorofare closed the loan in just two weeks from application to meet a time of essence closing requirement for the borrower.

Situated in heart of the Fulton Market district of Chicago, 1144 West Fulton is an approximate 27,689 gross SF loft building originally built in the mid-1920s as an egg distributorship. The property is located on Fulton Street between May Street and Racine Avenue in the heart of the Fulton Market / West Loop submarket. After many years and several uses, the building was purchased in 1995 by the Seller. Both the interior and exterior of the building were completely renovated including a new roof, extensive masonry work, floor repair, new mechanicals, elevator and stairwell installation as well as the build-out of all the commercial spaces.

The property is currently 78.5% occupied and generates an in-place debt yield of just under 6%, thus Thorofare withheld a “delta” interest reserve to sufficiently cover debt service at a 1.15:1.0 DSCR. Thorofare also provided capital expenditure and leasing earn-out in order to capitalize the Borrower’s business plan of converting the ground floor from office to retail to improve the profitability of the property and fill the retail void in the neighborhood.

The sponsor is a Chicago-based vertically integrated real estate development, investment, and management company focused on the adaptive reuse of obsolete or underperforming assets in targeted urban infill areas. The sponsor has invested in excess of $250 million of private equity capital towards Chicagoland commercial projects and conducts all of its construction, property management, and leasing efforts in-house.

Thorofare placed this loan in its Thorofare Asset Based Lending Fund III, L.P., a $250 million discretionary debt fund.