Thorofare Capital has funded a $1,795,000 bridge loan for the discounted payoff financing of a $3,795,000 loan secured by 74,000 sq. ft., multi-tenant commercial building located on the corner of Florin Road and 24th Street in Sacramento.

The loan was acquired by Sterling Savings Bank following Sterlin’s acquisition of Sonoma Bank. Thorofare’s closed the transaction in less than two weeks from application in order for the sponsor to capture a $2,000,000 principal reduction. At the time of closing, the property was 85% occupied by 42 tenants producing $32,830 in net operating income per month at the time of the close, resulting in an attractive debt service coverage ratio of 1.45:1.0.

The transaction opportunity allowed for an attractive loan for Thorofare meanwhile the reduced basis and lower interest payments allowed the sponsor to compete with other landlords in the market to increase occupancy by offering lower rents and better tenant improvement packages.