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1920 North 1st Avenue
$7,125,000 Acquisition & CapEx Financing
Tucson, AZ | May 2019
Thorofare Capital has funded a $7,125,000 short-term bridge loan for the acquisition and renovations of 1920 N. 1st Ave., a student housing property near the University of Arizona (U of A). The loan was underwritten and closed in less than three weeks, for the sponsor to take advantage of an opportunistic purchase from a distressed seller who was burdened by an unsustainable equity capital structure.
The interest-only, two-year loan includes a future funding facility towards planned common renovations area and unit upgrades.
The property consists of an 88-unit, 247-bedroom, off-campus student housing complex located on a 3.38-acre site approximately 0.75 miles northwest of the main campus boundary of the U of A.
U of A student enrollment has grown from 31,389 as of Fall 2000 semester to 45,217 as of Fall 2018, a 44.1% increase, with an average annual growth rate of 2.5%.
The sponsor is a Los Angeles-based private investor that owns several student housing assets in Tucson and is a repeat borrower customer.