Thorofare Capital has provided an $8,337,000 floating-rate senior loan for the acquisition and planned condominium conversion of a 50,400 square-foot small-bay industrial property in the Pacoima neighborhood of the San Fernando Valley in Los Angeles.

Built in 1978, the property consists of three contiguous buildings with twelve suites averaging 4,200 square feet each. Each unit includes 16-foot clear heights, office space, restrooms, and grade-level loading. At closing, the property was 91.7% leased to ten tenants across industries such as woodworking, e-commerce distribution, steel fabrication, and theatrical supply.

The business plan is to secure condominium entitlements and pursue a sell-down strategy to tenants and new buyers. Planned improvements include upgrades to common areas and exteriors, turnover of units as leases expire, and preparation of a model unit for marketing.

Loan proceeds were used to acquire the property, fund reserves, and purchase a rate cap. The loan includes a capital expenditure holdback and a TI/LC facility, with disbursements tied to entitlement milestones. The floating-rate, interest-only loan has an initial two-year term with extension options.

The sponsorship group brings experience in value-add real estate strategies and is pursuing this investment as part of a programmatic effort focused on commercial condominium conversions across the West Coast.