Thorofare Capital has funded a $7.9 million recapitalization loan for a 31,452 square foot, class “A” grocery-anchored retail property in Edgewater. The sponsor originally developed the mixed-use retail and condominium property in 2008 for a total cost of more than $50 million. After the inventory of 160 luxury condominium units were sold off, the retail condominium units were encumbered by debt exceeding $20 million.

The value-add transaction was complex in that there were multiple existing lenders accepting a significant discounted payoff and the financing was subject to two new leases being executed prior to closing in order to bring the occupancy to 75%. The new tenants, Sleepy’s and Nova Spinal Care, have signed long-term leases and will take occupancy immediately upon delivery of the finished interiors. The property’s anchor is Aldi, an investment grade grocer that occupies 50% of the available space. Aldi grossed over $53 billion in global revenue and owns The Trader Joes Company.

More than $1 million of the financing proceeds will be used for the lease-up costs associated with the two brand new leases as well as the remaining 7,000 square feet of vacant space, which will create a significant amount of revenue further adding value at the property once leased.

The property borders the city of Edgewater and the Rogers Park neighborhood off of Sheridan Road. The grocery-anchored retail property is located on the ground floor of Clarovista, a 160-unit luxury condominium project. Clarovista is located half a block from the Chicago City Transit Authority (CTA) train and bus stops, steps away from Loyola University, and three blocks from Lake Michigan as well as four miles away from the Northwestern University campus. The property enjoys the benefits of a population in excess of 350,000 within a 3 mile radius