Thorofare Capital has funded a $13,200,000 floating rate commercial mortgage for the recapitalization renovation, and lease-up of a 145,650 SF creative industrial and makerspace property located in Portland, Oregon.

The sponsor originally acquired the asset all cash and sought to obtain a senior loan to (i) repatriate existing equity, (ii) fund remaining costs to complete re-positioning/renovations (iii) cover carry costs associated with the lease-up.  The sponsor’s plan is to refinance the loan with permanent financing once the renovations and lease-up are completed.

The non-recourse, interest-only, floating rate whole loan carries a three year term and was priced at a competitive spread over the 30-day LIBOR index.  The structure includes a flexibility prepayment provision and several reserves for carry costs, renovations, debt service and soft costs.