Thorofare Capital has recently funded a $5,620,000 refinance loan at 68% LTC for West Point Village Apartments, a 382-unit multifamily community located in Pasadena, Texas. A New York-based private investment group with a local property management presence in Houston acquired the property in an all-cash transaction with a planned $4,500,000 capital expenditure plan subsequent to purchase. Immediately following the initial acquisition, the sponsor and the third party general contractor swiftly completed the first phase of the multi-phase overhaul strategy and were progressing the ongoing construction at the property while searching for flexible debt financing to refinance the project. The sponsor required a fast-paced lender that was able to underwrite the transaction and understand the value upside.

Through this financing, the sponsor was able to repatriate a meaningful amount its initial equity outlay and then capitalize the total capital expenditures and other project-related costs. The property was 41% occupied at the time that the transaction went under application and shortly after closing reached 60% pre-leased occupancy. Thorofare will release funds in tranches directly to the general contractor throughout the renovation process and will work closely with the sponsor and its management through a partnership methodology in terms of active involvement, flexibility, and funding through the business plan.

Thorofare worked diligently with its vendors, counsel, and engineers to complete the necessary due diligence and close the transaction closed in just two weeks from application. Thorofare’s reliable performance allowed the sponsor to focus on adding value to the property rather than exerting its resources to navigate the capital markets in search of a reliable lender that can execute.