National scope. Local knowledge.
500 West Jefferson
$33,220,000 Note-on-Note Financing
Louisville, KY | December 2018
Thorofare Capital has funded a $33,220,000 structured credit facility, which includes a $17,000,000 Short-Term Bridge Loan for the non-performing first mortgage (NPL) acquisition, secured by 500 West Jefferson. The additional $16,220,000 upsize option, for the capital improvements, repositioning and TI/LC future funding, is subject to certain requirements and thresholds.
The underlying collateral is a 572,241 SF office building located in Louisville’s CBD. The note-on-note structure, which closed in just four business days from application to funding, allowed an opportunistic distressed debt investor to purchase the NPL at a significant discount to the existing outstanding loan balance from a CMBS special servicer.
The value-add business plan contemplates acquiring the note and pursuing fee title to the 500 West Jefferson to then reset ownership’s basis, which will allow the sponsor to re-introduce the well-located asset to the market through competitive lease rates and TI packages. Given the previously unsustainable capital structure and the original, 2006-originated CMBS loan’s over-
leverage, the asset has a lot of potential now that the debt has been “right-sized”.
The Sponsor is a New York-based Commercial Real Estate investment firm focused on distressed and opportunistic debt and equity transactions across various asset classes and geographies. The sponsor currently manages a portfolio of approximately 6.0 million square feet across 20 U.S. cities.