Thorofare Capital has funded a $16.1 million bridge loan for the acquisition and planned upgrades of a West Los Angeles-area multifamily asset. The sponsor sourced an off-market transaction and capitalized on the opportunity to break into a highly sought-after property, which was in need of unit interior modernization, in order to maximize cash-flow by increasing occupancy and rental income.

The financing proceeds will be used by the sponsor to purchase the asset, immediately commence a substantial renovation plan and significantly improve the cash-flow by leasing renovated units at prevailing market rents.

Given the transitional nature of the property, the loan included interest and shortfall reserves to carry the business plan through the planned renovation and stabilization. Thorofare provided a non-recourse, interest-only loan with an initial term of three years plus two extension options.

The sponsor is an experienced local investment firm that is primarily focused on acquiring, repositioning and self-managing value-add multifamily real estate in high barrier-to-entry markets throughout the Western U.S.