Thorofare Capital has funded $13.13 million in pre-TCO acquisition financing for Mile High Place South, a 2021-built, 60-unit multifamily property in the fast-growing Sloane’s Lake sub-market of Denver. The sponsor’s business plan is to obtain HUD 223(f) permanent financing upon the property achieving seasoned stabilized occupancy and sufficient operating history.

Thorofare provided the bridge loan to a Qualified Opportunity Zone investor, who needed to close on the purchase prior to TCO in order to receive the full deferred tax benefits of a QOZ investment.

Mile High Place South is well located, just two miles east of downtown Denver and within walking distance of Sloan’s Lake Park, a 177-acre community park which includes playgrounds, tennis courts, athletic fields, running trails, and picnic areas with views of the Rocky Mountains and Downtown Denver. It is surrounded by new condo and upscale, high-density townhouse development.

The Denver multifamily market has been one of the strongest performers in the country over the past 12 months (from August 2021) due to the steady in-migration. Since Q3 2020, the market has experienced positive net absorption of almost 12,000 units. Additionally, Denver has experienced double-digit rent growth in the past 12 months (from August 2021), which has outperformed the national average.

The sponsor is an experienced Bay Area-based private investment firm that acquires value-add and core multifamily properties in the Western U.S.