Thorofare Capital has funded a $9,560,000 fixed-rate bridge loan for the recapitalization and renovation of a three-building, ~27,000 SF multifamily portfolio located in the Brooklyn, New York neighborhoods of Williamsburg’s and Crown Heights. Thorofare closed the transaction in just 15 business days, in order to assist the sponsor in a timely simultaneous closing while consolidating multiple loans and keeping the renovation process ongoing.

The highly structured portfolio loan includes both reserves for immediate repairs and debt service/operating shortfalls, as well as a future funding facility to cover costs associated with gut renovations and re-tenanting of the buildings. The sponsor’s plan is to refinance Thorofare’s loan with permanent financing once the buildings are renovated and leased to stabilization. The loan includes partial release pricing and allocated loan amounts.

The portfolio includes three buildings, located on 4th Street and St. Johns Place, that are undergoing tenant buyouts, heavy renovations and re-tenanting. The interest-only bridge loan carries an initial term of 18 months and includes an extension option subject to timely completion of the planned renovation and operating performance hurdles. The sponsor is a local real estate investor who is focused on acquiring, renovating and managing multifamily properties primarily throughout Brooklyn.