Thorofare Capital has funded an $8.1 million floating-rate commercial mortgage for the recapitalization of The Venice Collection, a 15,428 SF retail property and an 8,533 SF office building located on Venice Boulevard in Los Angeles, California.

The financing was utilized to retire existing senior bank debt and exercise a partnership buyout once the re-entitlement was completed. The sponsor contributed new equity by rolling 1031 exchange proceeds towards this recapitalization. The limited-recourse, three-year floating rate loan months includes one year of yield maintenance and does not require amortization during the initial term.

One of the properties is located at the southeast corner of Venice Boulevard and Wasatch Avenue, one street west of Centinela Avenue, in the Mar Vista neighborhood within West Los Angeles. It is situated about one mile west of the San Diego (405) Freeway and consists of 20,884 gross SF, or 0.48 acres; improvements include a 1988-built, one and two story, L-shaped, unanchored strip retail center consisting of 15,428 SF. The Property is 100.0% leased to 12 tenants. The second property is located at the northeast corner of Venice Boulevard and Boise Avenue, and is comprised of two contiguous parcels totaling of 14,578 gross SF, or 0.33 acres. The 1954-built, two-story office building contains 8,533 net rentable SF. In addition, there is an adjacent vacant lot that serves as collateral for the loan.

The sponsor plans to sell the Property to a developer that will demolish the existing improvements and develop a mixed-use apartment/retail project on the site. An application has been submitted by the Borrower for the development of a 77-unit apartment project with ground floor retail. The portfolio is located in a dense and affluent neighborhood with very low vacancy rates and strong demographics.

The sponsor is a Los Angeles-based, privately held real estate development and investment firm. The sponsor executes opportunistic entitlement projects and value-add repositioning of multifamily, retail and office properties in high-barrier-to-entry, supply-constrained markets through programmatic arrangements with high-net-worth investors and joint ventures with institutional fund managers.