Thorofare Capital has funded a $10.335 million bridge loan for the acquisition of the South Normandie Industrial portfolio, which totals 85,612 SF situated on 3.90 acres improved with three industrial, flex and cold freezer buildings in Gardena, California.

At the time of loan origination, the warehouse, cold-freezer and flex buildings were 58.3% leased.

Upon acquisition, the sponsor’s primary business plan is to secure entitlements for up to 400 apartment units (103 units/acre) and ultimately sell or joint-venture with a large multifamily developer.

The City of Gardena is completely built out and development sites of this size, configuration, and access are rare.

In the interim, the sponsor ill lease-up the improvements on a short-term basis for near term cash-flow to offset carry costs while pursuing entitlements.

The non-recourse, interest-only loan carries a term of three years and was structured with flexible prepayment optionality.

The Sponsor is a Los Angeles-based private investment group with a wide-ranging background of acquiring and managing value-add, opportunistic and development projects in its Western U.S.-focused portfolio.