Thorofare Capital has funded a $28,000,000 short-term loan to finance a partnership buyout for a 7-building, 254-unit multifamily portfolio located in Brooklyn, New York (three properties), and Bronx, New York (four properties). The sponsor sought financing to buy-out its institutional investment partners that originally acquired a majority equity stake in a larger portfolio, including the subject properties, seven years ago. With an opportunity to re-purchase majority equity in the subject properties at a substantial discount to fair market value, the sponsor required certainty of execution under circumstances that conventional and conduit lenders could not execute within the timeline allowed by the seller. Thorofare closed the off-market transaction in just six days from application and structured the deal with custom-tailored reserves, a capital improvements facility, and a hybrid payment reserve to support the sponsor’s business plan.

The first property is a 4-story, 100% occupied residential building located on the east side of East 21st Street between Beverly Road and Cortelyou Road in the Flatbush neighborhood of Brooklyn. The subject consists of 24 rentable residential units, with a unit mix consisting of one-bedroom and two-bedroom apartments.

The second property is a 39-unit, 7-story, 100% occupied residential building located on Ocean Avenue on the east side of Ocean Avenue between Church Avenue and Caton Avenue in the Flatbush neighborhood of Brooklyn. A ten-space parking garage is located in the basement of the building.

The third property consists of a 100% occupied, 6-story mixed-use building located on the northwest corner of East 168th Street at Franklin Avenue in the Morrisania neighborhood of the Bronx. The subject consists of 54 rentable residential units, with a unit mix consisting of one-bedroom, two-bedroom, and three-bedroom apartments. Additionally, there are six commercial units on the ground floor of the subject, totaling 4,600 square feet of space. All six commercial units are leased and generate cash flow.

The fourth property is a 100% occupied, 6-story residential building located on the east side of Franklin Avenue between East 168th Street and East 169th Street in the Morrisania neighborhood of the Bronx. The subject consists of 56 rentable residential units, with a unit mix consisting of one-bedroom, two-bedroom, and three-bedroom apartments.

The fifth property is a 100% occupied, 5-story residential apartment building located on the west side of Franklin Avenue between East 168th Street and East 169th Street in the Morrisania neighborhood of the Bronx. The subject consists of 36 rentable residential units, with a unit mix consisting of one-bedroom, two-bedroom, and three-bedroom apartments. The sixth property is a 100% occupied, 4-story residential apartment building located on the northeast corner of Beverly Road at East 21st Street in the Flatbush neighborhood of Brooklyn. The seventh property is a 100% occupied, 5-story residential apartment building located on the north side of Hull Avenue between East 204th Street and East Mosholu Parkway North in the Bedford Park neighborhood of the Bronx.

Thorofare placed this loan in its third discretionary investment vehicle, Thorofare Asset Based Lending Fund III, L.P.