National scope. Local knowledge.
$51,500,000 Hotel-To-Multifamily Conversion Financing
Warwick, RI | Groton, CT | Dearborn, MI | Fayetteville, NC | May 2023
Thorofare Capital has provided a $51,500,000 portfolio financing for the GoodHomes Portfolio, a five-property assemblage of hotel-to-multifamily conversion projects across North Carolina, Michigan, Connecticut, and Rhode Island. Thorofare was able to close this transaction in less than 45 days from loan application, after another lender was unable to close within a compressed time. The transaction included third party preferred equity in the capital stack and various separate escrows with unaffiliated sellers.
The GoodHomes Portfolio encompasses 906 units, totaling 402,130 net rentable square feet in Fayetteville NC (2), Dearborn MI, Groton CT, and Warwick RI. In each of the markets where the properties are located, there is no new workforce housing expected to deliver in the next three years, with a historical vacancy of less than 5%.
The interest-only, structured whole loan carries an initial term of 30 months, in addition to two extension options. Thorofare creatively structured the facility with future-funding towards CapEx, rate earn-downs upon business plan milestones and flexible prepayment provisions.
The sponsorship is a joint venture between a New York-based family investment office with decades of real estate investment experience and a newly formed New York City-based, private real estate investment firm with focused opportunistically acquiring distressed hospitality and senior living assets suitable for conversion into workforce housing rental communities.