Thorofare Capital has funded a $2,430,000 bridge loan for a Houston-based sponsor’s acquisition and renovation of Wildwood Terrace Apartments (“Wildwood”), a 56-unit multifamily property located on Westwood Drive of the city of Odessa and within central Ector County. The sponsor’s business plan includes a $420,000 rehabilitation plan that was fully capitalized at a competitive advance rate by Thorofare. Thorofare will release funds in tranches directly to the general contractor throughout the renovation process.

Wildwood consists of 8 residential buildings situated on a 3.23 acre parcel of land, with 56 units averaging 948 square feet. The property is fully occupied and produces significant in-place cash flow. Wildwood includes 110 covered parking spaces which were expanded after a renovation program implemented in 2009 that necessitated all new roofing, exterior paint, all new AC units, new individual hot water heater, and insulated window replacements.

By utilizing its proven in-house property management program, the borrower will be able to increase operating efficiencies and implement an all-hands-on strategy by self managing the renovation and rent increase push. The sponsor’s property management team has demonstrated its ability to increase occupancy and net operating income at two other multifamily properties in the Houston market, of which Thorofare has previously financed.

The sponsor is a repeat client of Thorofare and has successfully closed and executed two other value-add multifamily acquisitions using our flexible capital solutions. With a short-term yield maintenance requirement versus an onerous pre-payment penalty, the borrower has the flexibility to refinance with a permanent loan after completing the renovations and stabilizing rents.