Thorofare Capital has funded a $19,880,000 floating rate commercial mortgage for the acquisition and lease-up of Parkway Office Centre, a 134,643 square foot class B office building located at 1391 North Speer Boulevard, Denver, CO 80204 (the “Property”). The non-recourse loan is interest-only for the initial term, with amortization required during the extension period. From the loan proceeds, Thorofare structured an up-front TI/LC reserve as well as a future funding facility for additional lease-up costs. Earlier in 2016, the property secured a new lease with a credit state tenant for 12 years on 25+% of the NRSF.

Denver, Colorado ranks 11th on Forbes’ “America’s Fastest-Growing Cities 2016” list. Situated within the Golden Triangle in Downtown Denver, Parkway Office Centre consists of an eight-story Class B brick veneer office building with an adjacent three-story parking garage structure comprising a net rentable area of 134,643 square feet. At the time of closing, the property was 94% leased, of which 26% of the NRA was recently leased to the Denver Health and Hospital Authority (Moody’s: Aa1), one of Denver’s largest health organizations serving ~25% (~150,000 people) of the population. The building is situated two blocks from the Auraria light rail station and offers structured parking.

The sponsor’s business plan is to capture upside in increased parking revenue as well as leasing to market occupancy. The sponsor believes that the in-place rents are below market and sees the near-term rollover as an opportunity to raise rents to market. The sponsor is a Los Angeles-based family office that has been growing its commercial real estate portfolio across the country, with a focus on institutional-quality office properties, leased to strong credit tenants, in growing secondary markets.