Innovative Strategies. Redefining Performance.

We continue to practice the ethos instilled within our organization from the beginning.

Our approach to commercial real estate lending is to build long-term relationships by providing a transparent, reliable and swift process to our clients. With ongoing fluctuations in the capital markets, we seek to deliver superior risk-adjusted returns to our investors while our borrowers benefit from consistent certainty of execution. This philosophy has remained unchanged since our founding in 2010.

Multi-Strategy Debt Platform

Through a series of funds, joint ventures, and separate accounts, Thorofare originates opportunistic, value-add, and core-plus loans.

  • Short-Term Bridge Loans Opportunistic

    • Loan Amounts

      $15MM to $100MM

    • Term (Years)

      1+6 Months or 1+1

    • Interest Rates

      1-Month Term SOFR + 500-600bps

    • Description

      Special situations, quick-closings, NPL/REO auction acquisitions, DPOs or "heavy-lift" CapEx projects

  • Intermediate-Term Whole Loans Value-add

    • Loan Amounts

      $15MM to $100MM

    • Term (Years)

      2+1 or 2+1+1 or 3+1+1

    • Interest Rates

      1-Month Term SOFR + 450-500bps

    • Description

      Floating rate whole loans for experienced sponsors acquiring or recapitalizing transitional properties through future-funded CapEx, TIs and LCs.

  • Permanent Loans Core+

    • Loan Amounts

      $20MM to $60MM

    • Term (Years)

      5, 7, or 10

    • Interest Rates

      5.75% - 6.50% Fixed

    • Description

      Fixed rate loans for institutional quality properties with near-stabilized cash flow profiles

  • Core+:

    Institutional-like properties that have cash-flow and are considered light repositioning or are in a transitional phase e.g. leases rolling within the next 1-3 years and need to have structure before being refinanced with permanent CMBS, LifeCo., bank or GSE financing.

  • Value-Add:

    Opportunities where we finance the acquisition of a property that has leasing of vacancy or below-market in-place rents and qualified borrowers seek to add value by completion a renovation or improving management to maximize cash-flow through a well-capitalized TI/LC budget or CapEx budget. These are loans that start with 2-3 years of initial term followed by 1-3 one-year extension options totaling 5 years of total loan term. Renovation and leasing costs are "future funded".

  • Opportunistic:

    Typically time-constrained, quick-close special situations such as auction acquisitions, discounted loan payoffs (DPOs), non-performing loan (NPLs) acquisitions, 1031 exchange or maturing loan deadlines where qualified borrowers need a reliable, balance sheet lender to offer certainty of execution and prepayment flexibility. Also, projects that are considered heavy lifts, where CapEx future funding may exceed 50% of the total loan commitment, or a cash-flow shortfall (due to in-place occupancy at the time of loan closing or a completely vacant asset) requiring a full interest reserve funded at closing.

Short-Term Bridge Loans

Eligible Properties/Assets

  • Build-to-Rent (BTR)
  • Self-Storage
  • Industrial
  • Multifamily
  • Condo Inventory
  • Medical Office Building
  • Data Centers
  • Parking Garage/Lots
  • Industrial Outdoor Storage (IOS)
  • Grocery-Anchored Retail
  • Life Sciences
  • 55+/Active Adult/ILF (Non-Acute)
  • Hospitality

Target Transactions

  • Value-Add Acquisitions
  • Lease-Up or Upcoming Rollover
  • Partnership Recapitalizations
  • Bridge-to-Sale Refinance
  • Moderate/Heavy Renovation
  • Note-on-Note/Lender Financing

Financing Parameters

Timing to Close 5-20 days from application
Loan Size $15 million to $100 million
LTV Up to 68% LTV (maximum advance to 80% LTV with inclusion of “B Note,” or Mezzanine Financing in structured transactions)
Lien Position First Mortgage or Deed of Trust or Note Hypothecation for Note-on-Note Financing
Loan Term 1 to 3 years
Extensions 6 to 12 months, available at market extension fees
Interest Rate 1-Month Term SOFR + 500-600bps; ability to PIK/accrue to maturity
Amortization Interest-only, additional structure/sweeps may be required on a case-by-case basis
Debt Yield Below 1.0X DSCR acceptable if supported by a Debt Service Reserve, cash-flowing assets preferred
Yield Maintenance Minimal pre-payment penalty, generally 1/2 of initial term
Recourse Non-recourse, other than standard "bad boy acts" or Recourse structure for higher risk transactions
TI/LC Facility Future funding facility towards tenant improvements and leasing commissions
CapEx Holdack Holdbacks for renovations, with timely review and disbursements typically occurring within 10 days after submission of a complete draw request package
Deposits Expense deposit adequate to cover third party reports, legal fees and other customary due diligence or underwriting costs
Origination & Exit Fees Market competitive fees adjusted to loan size, timing and complexity

Intermediate-term Whole Loans

Eligible Properties

  • Light Industrial & Warehouse
  • Multifamily
  • Office
  • Grocery-Anchored Retail
  • Self-storage
  • Data Centers

Target Transactions

  • Value-add Acquisitions
  • Lease-up or Upcoming Rollover
  • Partnership Recapitalizations
  • Bridge-To-Sale Refinance
  • 5-Year CMBS 2.0 Maturity / Transition

Financing Parameters

Timing to Close 25-40 Days from application
Loan Size $15 million to $60 million
LTV The lesser of 75-80% of “as-is” value or 65-75% of “as-stabilized” value
Lien Position Senior secured first mortgage or deed of trust
Loan Term Initial term of 2-4 years, with a total term of 5 years (if fully extended)
Extensions Interest-only with market-driven amortization during the Extension(s)
Interest Rate 1-Month Term SOFR + 450-500bps; ability to PIK/accrue to maturity
Amortization Interest-only
Debt Yield Preference for going-in NCF DY of 4%+; non-cash-flowing properties requiring an interest reserve are evaluated on a case-by-case basis
Yield Maintenance Typically 50% of the Loan Term; with exceptions on a case-by-case basis
Recourse Non-recourse, other than standard “bad boy acts”; heavier CapEx may require a Completion Guaranty
TI/LC Facility Future funding facility towards future tenant improvements and leasing commissions
CapEx Holdack Holdbacks for renovations, with timely review and disbursements typically occurring within 10 days after submission of a complete draw request package
Deposits Expense deposit adequate to cover third party reports, legal fees and other customary deal costs
Origination & Exit Fees Market competitive fees adjusted to loan size, timing and complexity

Permanent Loans

Eligible Properties

  • Light Industrial & Warehouse
  • Multifamily
  • Self-Storage
  • Medical Office Buildings
  • Grocery-Anchored Retail
  • Hospitality

Target Transactions

  • Acquisitions
  • Stabilized Properties
  • Single Tenant Net Leased Properties
  • TIs/LCs Future Funding for Leasing
  • Structuring for Expiring Leases
  • DST Syndications

Financing Parameters

Timing to Close 45 days from application
Loan Size $20 million to $60 million
LTV Up to 75% LTV “as-stabilized” / 80% LTC of total project costs
Lien Position Senior secured first mortgage or deed of trust
Loan Term 5, 7, or 10 year initial term
Extensions Case-by-case
Interest Rate 5.75% - 6.50% Fixed Rate
Amortization Interest-only for up to 5 years, followed by 30-year amortization
Full-term interest-only available
Debt Yield 7.0% minimum in-place debt yield
Below 1.0X DSCR acceptable if supported by a Debt Service Reserve
Yield Maintenance Minimum interest for 50%+ of the Loan Term, followed by step-down prepayment fees then open at par payoff for the final two years of the Loan Term
Recourse Non-recourse, with standard carve-outs
TI/LC Facility Funding of up to 100% of tenant improvements and leasing commissions
CapEx Holdbacks Holdbacks for renovations with timely review and disbursements
App Deposit Expense deposit adequate to cover third party reports, legal fees and other customary deal costs
Origination & Exit Fees Market competitive fees adjusted to loan size, timing and complexity