Thorofare Capital has funded a $5,100,000 bridge loan to refinance a portfolio of four assets, including real property and a note hypothecation, located throughout California. The portfolio includes a 25,000 square feet, income-producing parking lot (the “Lot”) situated in Downtown San Diego’s Little Italy sub-market at 1270 Columbia Street. The Lot was leased to a third party parking operator and is fully entitled for the development of a 386-room Hyatt Hotel.

The financing provided by Thorofare permitted the sponsor to pay off a matured senior loan, which was held by a regional bank. The sponsor acquired the property before the financing crisis with plans to develop a full service hotel with a luxury F&B component. Due to the downturn, the value deteriorated as construction financing dried up and the sponsor struggled to maintain carry costs and stay current on real estate taxes and mortgage payments due to the in-place debt yield.

Upon Thorofare funding the transaction, the sponsor continued with its procurement of an EB-5 development loan for the vertical construction of the planned Hyatt Hotel. To maintain a relatively low LTV, the sponsor provided additional collateral for the Loan that included a 2009-vintage, 100-key Holiday Inn Express, which is proximate to the Camp Pendleton Marine Base in Oceanside, California.

The Holiday Inn Express historically produced an average daily occupancy of 74.8%, with an average daily rate of $125 and RevPAR of $88. Furthermore, additional assets in the portfolio include a collateral assignment of a Note that encumbers The Vegabond Hotel in Costa Mesa, as well as a second Deed of Trust that is secured by The Oakland International Airport Hotel, which the sponsor had listed for sale at the time of the Loan.

Thorofare worked dynamically with its vendors, legal counsel and the sponsor to finalize this multifaceted, complex transaction in less than ten business days in order to rescue the equity in the Lot by leveraging other assets in the sponsor’s portfolio. Thorofare placed this loan in its second discretionary debt fund, Thorofare Asset Based Lending Fund II, L.P.