Thorofare Capital has funded a $3 million fixed-rate bridge loan for the acquisition of a 65,547 square foot office facility located on Copperhill Parkway in Santa Rosa, California. The sponsor owns over four million square feet of commercial real estate including seven office buildings in Santa Rosa, and required a fast closing for an auction sale with a limited escrow timeline without contingencies. The property is a single tenant facility, which is occupied by a tenant and that is paying significantly below the identified submarket rents. The planned source of repayment will be to refinance Thorofare’s loan with permanent debt after stabilizing the property at market rent rates.

The improvements represent concrete construction that were originally built in 1998 and are located on a 5.21-acre site. The Property is configured for dual tenancy in a single story building. There are several glass storefronts providing exterior only access, and no common area. The Property features three grade level doors at the rear as well as one loading dock. The City of Santa Rosa’s office market includes 947 buildings totaling approximately 10.6 million square feet. The vacancy rate has been declining over the past six years. Vacancy at the end of 2009 was 11.4%; however, the current rate of 7.1% represents a drop of 430 basis points.

The recourse, interest-only capitalization carries an initial term of one year with extension options and was sized to 67% LTC. The property was sold as REO on behalf of a CMBS special servicer who foreclosed on the underlying asset in 2012.

The sponsor is a Northern California-based owner-operator with current holdings that exceed 4,000,000 square feet of office, retail and industrial properties throughout California, Oregon, Washington and Alaska.