Thorofare Capital has closed a $18,660,000 floating rate whole loan for the acquisition and lease-up of The George MXU in Denver, CO.

Located in the Central Business District, the 90,631 SF property is comprised of an eight-story building with retail space in the basement and first floor and office space on the upper seven floors.

Thorofare provided a competitively priced, interest-only three-year loan that includes two performance test-based extension options.

The sponsor plans to utilize the loan to implement a value-add business plan, including a multi-million-dollar renovation/upgrade, tenant improvement and leasing commissions for stabilizing the occupancy, and improving the operating efficiencies of the asset. Planned improvements include a renovation of the lobby, the exterior, and the amenity areas.

Despite the impact of the pandemic, Denver’s leasing activity has picked up in the prior 12 months leading up to this loan closing, and the pace of move outs is continuing to decelerate.

The George MXU benefits from being located one mile southeast from 16th Street Mall, which is home to nearly 200 retailers and restaurant. As one of Denver’s most vibrant public spaces, the 16th Street Mall is the most popular shopping and entertainment destination for visitors to metro Denver. Additionally, there is a $149,000,000 budget that has been approved in funded for the reconstruction of 16th Street Mall.

The sponsor is a Southern California-based private investor that specializes in acquiring, renovating, operating, and selling commercial properties throughout Southwestern U.S. markets. The principals of Harbor have successfully been involved in the renovation / repositioning / development of 29 office projects in California and Colorado totaling approximately 4 million SF. The sponsor is backed by a private equity real estate fund operator that has acquired over $2.7 billion of assets across 17 million square feet of real estate space, including 19,000 multifamily units.