Thorofare Capital has funded a $15,000,000 floating rate commercial mortgage for the acquisition and lease-up of a 60,739 square foot retail facility located at along Yorba Linda Boulevard in Yorba Linda, California. The loan will have an initial funding of $12,625,000 with $1,925,000 held back for TIs/LCs and $450,000 as an earn-out.

The property is a 60,739 square foot neighborhood retail center located at 18601-18659 Yorba Linda Boulevard in the city of Yorba Linda. The improvements were originally constructed in 1984 and are situated on a 5.170-acre site. Home Ranch Community Center provides for the sale of convenience goods (foods, drugs, and sundries) and personal services (laundry and dry cleaning, barbering, shoe repair, etc.) for the day-to-day living needs of the immediate neighborhood.

The five year, non-recourse senior loan includes a creative structure for capital expenditures and lease-up costs and does not require amortization during the initial loan term. As an incentive for the sponsor to aggressively lease up the property, Thorofare structured an earn-out, which is subject to achievement of a minimum rent hurdles.

The sponsor is a full service commercial real estate firm that specializes in ownership, property management, leasing, construction, and turnaround of value-add and core-plus properties throughout the Western US. The company’s investment strategy focuses on purchasing underachieving projects with high upside potential within their respective markets.