Thorofare Capital has recently financed a $3.57 million recapitalization loan for Hapeville Gateway, a 30,000 sq./ft. retail center located on Virginia Avenue in Atlanta, Georgia. The financing transaction closed in just two weeks from application, allowing the sponsor to capture a significant discounted payoff of approximately 64.5% of the unpaid principal balance. The original loan balance was in excess of $6.3 million before Bank of the West sold the loan to a private investment fund, which gave special servicing rights to Situs, a Houston-based asset management firm. This DPO transaction provided the opportunity to de-leverage the Hapeville Gateway at well below replacement cost and extend near-term rollover by lowering the rents down to market levels.

The 2007-constructed property consists of one 1-story and one 2-story multi-tenant retail buildings connected by a walkway. The property is currently 87% leased to 7 tenants and the borrower has two new pending leases to bring the occupancy to 100% by early 2014 when the tenant improvements are completed. The property has been maintained in excellent condition with an additional $50,000 of recent capital improvements, including a repaved parking lot, painting throughout the common areas, and additional security systems throughout the property.

Hapeville Gateway is located less than half a mile from the Hartsfield-Jackson Atlanta International Airport and it is surrounded by 16 hotels with national flags. The immediate area lacks in terms of retail competition, resulting in significant traffic at the subject property. Situated on a highly visible corner of “Hotel Row”, the well located property borders a northbound exit ramp with access to the I-85. The 3.16-acre site offers ample parking ratio of 3.02 per 1,000 sq./ft. of gross leasable area.