Thorofare Capital has recently financed the acquisition of three cross-defaulted, cross-collateralized notes, with an unpaid principal loan balance of approximately $9,545,500, secured by three multifamily properties located in Fort Worth and Arlington, Texas. The sponsor purchased the note portfolio via an auction platform in a competitive bidding scenario.

The first note, with an original note balance of $3,367,000, is secured by a 1984-built multifamily property also known as Linda Vista Apartments. Linda Vista Apartments is a 216-unit garden-style apartment property located at 6001 Oakland Hills Drive in Fort Worth, Texas. The property is currently 90% occupied. The borrower plans to obtain fee-simple ownership of the property, hold the property long term due to its healthy nature, and refinance with a conventional loan.

The second note, with an original balance of $3,198,000, is secured by a 1981-built multifamily property also known as Bella Apartments. Bella Apartments is a 208-unit garden-style apartment property located at 5700 Boca Raton Boulevard in Fort Worth, Texas. The property was 30% occupied at the time of closing and required significant capital improvements to cure deferred maintenance. The sponsor plans take ownership of the property, begin an overhaul of the interiors and common areas, and lease up the vacancy to market occupancy levels prior to refinancing with a permanent loan.

The third note, with an original balance of $3,419,000, is secured by a 1964-built multifamily property also known as La Joya Apartments. La Joya Apartments is a 185-unit garden-style apartment property located at 1707 New York Avenue in Arlington, Texas. In late 2008, approximately $310,000 was spent in capital expenditures which included a remodeled leasing office, a new security system, repairs in 65 units, a new boiler and plumbing repairs. The property is currently 50% occupied and required significant capital improvements to cure deferred maintenance. This is a repeat transaction for an ongoing relationship between the sponsor and Thorofare stemming from the success of prior realized investments. In the note financing space, Thorofare plans to work in tandem with this experienced distressed debt investor to acquire well secured first mortgage loans that present opportunities for significant upside through proper funding for renovations, aggressive leasing efforts, and a hands-on management style.