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$1,795,000 Note Acquisition Financing
Brawley, CA | December 2010
Thorofare Capital has funded $1,795,000 in note acquisition financing for a defaulted loan secured by nine, two-story buildings containing 110-units located on 6.10 acres in Brawley, California.
Thorofare’s financing closed in just four days from application and allowed a Los Angeles-based experienced sponsor the opportunity to capture a highly discounted purchase price of the debt at well below the fair market value of the collateral property. The opportunistic distressed debt acquisition is a value-add transaction whereby the sponsor can secure fee-simple ownership through a deed in lieu of foreclosure, initiate a capital improvement and aggressive leasing plan to stabilize the property and subsequently refinance or sell the property at a price well above the acquisition basis.
The multifamily community was built in 1992 with subsequent renovations and was in good physical condition at the time of closing. There are 73 open parking spaces and 105 covered parking spaces and 5,600 sq ft of storage (84 spaces). There are 8 two bedroom, 1 bath units averaging 839 square feet, and 102 two bedroom, 2 bath units averaging 860 square feet containing a total of approximately 94,390 rentable square feet. The interior appointments include a refrigerator, range/oven, disposal, dishwasher, and a patio/balcony. Brawley is located approximately 200 miles Southeast of downtown Los Angeles and 120 miles east of San Diego and 90 miles NW of Palm Springs, at the intersection of Highways 86, 111 and 78 in the center of the Imperial Valley.