Thorofare Capital has funded a $3,150,000 acquisition loan for an experienced multifamily rehabilitation and turnaround investor to purchase, renovate, and re-tenant Chelsea Lane Apartments, a 208-unit apartment community, in Houston, Texas.

The property consists of 15 two-story apartment buildings, which were constructed in 1974 and are situated on a 9.5-acre site. At the time of closing, the property is 41.8% occupied and in fair overall condition. The sponsor plans to capitalize on a significant value-add opportunity by increasing rental rates and occupancy following an approximate $1,000,000 renovation plan.

The loan represented an attractive basis of $15,150 per unit upon the completion of the renovation plan. The sponsors will immediate effect the renovation commencing with roof repairs, HVAC’s, project gates, parking lot repairs as well as interior improvements.

The sponsor was pleased with Thorofare’s commitment to fund the opportunistic transaction within a two-week timeframe to capture the highly discounted purchase price. Further, Thorofare structured the transaction with flexible pre-payment options, allowing for the sponsor to maximize returns through a potential early exit. Thorofare funded 67% of the total project costs, including the transaction fees, renovation budget, and closing costs.