Thorofare Capital has funded a $13.34 million portfolio loan for the acquisition and planned renovation of six multifamily buildings in Long Beach, California.

The sponsor intends implement over $3 million for exterior renovations and interior upgrades to improve the buildings and bring rents up to market. The business plan is to sell the buildings individually upon stabilization, therefore requiring partial releases and flexible prepayment options.

The Long Beach Multifamily sub-market is a historically sturdy sub-market of greater Los Angeles. Historical occupancy is approximately 96% with average effective rents of around $2,000 per unit.

Thorofare provided a three-year, interest-only loan which is supported by renovation holdbacks, shortfall reserves and credit enhancements.

The sponsor is an experienced local investment group that focuses on repositioning of value-add multifamily properties in densely populated, mature markets throughout Southern California.