Thorofare Capital has funded $2,000,000 in first mortgage financing for the acquisition of a 42,392 sf industrial building located in Denver, Colorado.

The loan is jointly and severally full recourse to two sponsors with strong credit scores and a proven real estate track record. The use of funds include (i) purchasing 1955 S. Quince in Denver, Colorado and (ii) funding tenant improvements required to support a new lease for 100% of the building. Thorofare holds reserves of (i) $400,000 for tenant and capital improvements (ii) $125,480 for leasing commissions (iii) $91,666 as an interest reserve to cover debt service during a four months free rent period and (iv) an evergreen interest reserve of $250,000. In addition, Thorofare holds $500,000 of cash which may only be released after the borrower provides documentation that the tenant is properly licensed in the city and state. Upon providing that documentation, the $500,000 will be released back to the Borrower. At closing, Thorofare’s basis net of all reserves is only $632,854 ($14.93 psf) and fully funded the loan is $2.0 million ($47 psf) – each of which is well below the appraised “as-is” value of $3.8MM ($89.64 psf).