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Dixon Retail Center
$3,150,000 UPB Note Acquisition Financing
Dixon, CA | May 2011
Thorofare Capital has funded $891,000 in note acquisition financing transaction for a delinquent loan with an unpaid balance of $3,150,000. The sponsor acquired the loan from a major life insurance company via online auction that was facilitated by New York City-based Mission Capital Advisors. The sponsor paired its investors’ equity with Thorofare’s flexible leverage in order to maximize its return on equity invested.
Thorofare’s financing closed in just five days from application and allowed the Salt Lake City-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 achieve outsized returns through a payoff by the underlying borrower or secure fee-simple ownership through a deed in lieu of foreclosure.
The Subject Property is a 2005 constructed, 13,132 square foot retail shopping center comprised of two buildings containing nine suites with a parking lot between them. The property is shadow anchored by a Super Wal-Mart. The collateral property was 82% occupied at the time of closing by seven tenants, including Subway, Supercuts, Payless Shoes and PCS Wireless and generated $229,167 in annual NOI. The acquired loan was a full recourse loan to an underlying borrower with substantial net worth.