Thorofare Capital has funded a $40 million whole loan for the acquisition of 192nd West Lofts, a newly-built 163-unit, 3-building apartment complex in the Fisher’s Landing East neighborhood of Vancouver, Washington.

The Class A multifamily asset consists of elevatored-buildings, each four stories in height, and offers 215 parking spaces. Buildings 1 and 2 totaling 52 units were delivered in Spring 2020 and are currently in the lease-up phase. The third building, the largest building comprising of 109 units and most of the Property’s amenities, was 99%-finished at loan origination with TCO expected in early January 2021.

This submarket has attracted the attention of institutional developers and owner operators over the past five years due to the tax incentives for working professionals, accessibility within the Portland metro and robust submarket fundamentals. Over the past five years, the East Vancouver submarket had an average vacancy rate of 3.6%. Additionally, the average per SF rent in the submarket has increased by 28.3% between Spring 2016 and Fall 2020. The property’s sub-market has experienced positive growth in both population and households. Market research results show projections that the local population growth is expected to increase significantly over the next five years.

Given the transitional aspect of the lease-up and completion of the main building, the 18-month loan includes structure for shortfall reserves. Thorofare provided a limited-recourse, interest-only loan with an initial term of 18 months with a two extension options requiring performance tests.

The sponsor is a Boise, Idaho-based private investment group with a focus on opportunity zone project development and value-add acquisitions of residential housing-focused assets in the Pacific Northwest.