Thorofare Capital has funded a $1,900,000 portfolio loan for the discounted payoff of a 2008-vintage 7,600 square foot retail center, which is currently 100% leased to four tenants and located in Chicago, Illinois. The existing first mortgage on the retail center was in maturity default and the borrower was facing a potential foreclosure.

The lender, a regional bank, sought to remove the retail loan from its books and therefore offered the borrower a discounted payoff equal to a 80% of the unpaid principal balance. Two stabilized multifamily properties that were owned “free and clear” by the borrower were added as additional collateral for Thorofare’s loan to decrease the aggregate LTV.

Two multifamily assets include a 34-unit apartment building and a 60-unit, garden-style multifamily community, which the borrower had purchased in 2011 and 2012, respectively.

Thorofare was comfortable with the portfolio as the majority of the collateral consisting of stabilized multifamily properties with significant cash flow. Thorofare closed the portfolio loan within a short time frame, allowing the borrower to pay off the existing lender at an attractive discount.