Thorofare Capital has recently funded a $2,500,000 REO acquisition loan for a Santa Rosa-based owner and operator to purchase a lender-owned office building located in Beaverton, Oregon. The seller was an East Coast-based special servicer that foreclosed on a $5,300,000 CMBS loan borrowed by the previous owner. Commonly known as The 6600 Building, the property is a three-story, 36,398 square foot office located approximately seven miles west of Portland. Notably, it last sold for $6,100,000 in 2007.

Thorofare quickly became comfortable with the strong sponsor that currently owns and manages 4 million sq./ft. of office, retail, and industrial properties. The transaction represented an attractive loan basis relative to replacement cost, current, and stabilized value. Moreover, the in-place cash flow with a going-in 1.31x debt coverage ratio.

The 6600 Building was built in 1982 and features steel frame construction with an expansive glass curtain wall. The property is easily accessible from Highway 217, Downtown Portland and Beaverton and in close proximity to Washington Square, retail, medical, and food services and numerous golf courses. There are 145 parking spaces at the site, which provides ample parking accommodations at a ratio of 4.0 per 1,000 rentable square feet.

At the time of closing, the building was 69% leased to a diverse tenant roster. Subsequent to the closing, the borrower immediately renewed and expanded two existing leases, bringing the occupancy to north of 80% within a couple of weeks. Subsequent to the closing, CBRE has been retained as the leasing broker as well as the manager of the property.

Thorofare also provided 65% LTC and reserved funds for capital expenditures, tenant improvement, and leasing commissions that will be used by the sponsor to add value and execute its business plan. The transaction closed in just three weeks from application.