Thorofare Capital has recently funded a non-recourse, $8,222,000 recapitalization loan for a 420-unit multifamily portfolio owned by an Arizona-based distressed real estate investment and management firm. The transaction closed in just one week from application.

The portfolio of three properties includes Dwell at the View in Atlanta, as well as Dwell at 555 and Dwell at 1794 in Marietta. The loan represents an attractive loan basis of $19,576 per unit. The sponsor, an experienced residential investor with a track record of acquiring, stabilizing, and managing 5,000+ multifamily units, plans to complete the renovations, increase occupancy, and improve cash flows.

Proceeds of the portfolio loan are being used to pay off existing low-leverage senior loans, repatriate equity to the sponsor for use in a new, separate purchase transaction, and reserve $900,000 towards the completion of the renovations at two of the properties, Dwell at 555 and Dwell at 1794. Between 2011 to late 2012, the sponsor acquired each of the properties through separate transactions and subsequently commenced a complete overhaul renovation, re-branding, and stabilization plan to maximize its value-add strategy prior to a refinance of the properties.

The Dwell at the View is a 12-building multifamily community totaling 216 units, located on 13.85 acres in Northwest Atlanta. The property is currently 80% occupied and is undergoing the tail-end of an approximately $2,000/unit interior and exterior upgrade plan.