Thorofare Capital funded an $8,000,000 note acquisition financing transaction for a San Francisco-based owner and operator of the Ringwood II. Thorofare provided non-recourse note acquisition financing at 85% LTC because the sponsor was able to negotiate a purchase price well below the value of underlying property.

The underlying properties consist of two office/research and development (R&D) buildings situated on 9.96 acres of land located within the Ringwood Business Park in San Jose, CA. The buildings total 162,366 of net rentable square-feet and were 65% occupied at the time of closing, with an available suite of 57,624 square feet ideal for a single tenant.

The performing first mortgage was sold by an affiliate of General Electric, which acquired the note from Merrill Lynch. The original principal loan amount in 2006 was $14,500,000. The properties are leased to five tenants, including AKON and Frontier Semiconductor.

Following the successful closing to the transaction, the sponsor will plan on leasing up the vacant space and listing the properties for sale due to the strong demand from buyers seeking cash-flowing assets in Silicon Valley. Thorofare’s creative structure and flexibility allowed the sponsor to capture an attractive opportunity to de-leverage their properties through a note acquisition at attractive loan terms.