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Industrial & Cold-Storage Facility
$10,600,000 Note-on-Note Financing
Navarre, OH | June 2020
Thorofare Capital has funded an Opportunistic, Short-term Bridge Loan for a non-performing loan acquisition. Thorofare’s credit facility will allow the sponsor to execute a modification of the underlying loan to turn the non-performing loan into a re-performing loan.
The sponsor acquired the portfolio in an off-market transaction from a CMBS special servicer. Thorofare was able to close the note-on-note financing in under three weeks and worked quickly to navigate through its due diligence process.
The underlying collateral includes a 187,310 SF freezer warehouse and 613,000 SF of large distribution/warehouse space. The property was 96%-leased at the time of closing, with a new recent lease totaling 434,488 SF.
Nearly a quarter of the space is leased to an affiliate of a REIT that is one of the world’s largest owners and operators of temperature-controlled warehouses. Per Costar’s latest submarket report, the subject’s Industrial submarket has 49,698,071 SF of total inventory. The submarket has experienced 2.0% rent growth over the past 12 months with average market rent of $4.26 PSF and submarket vacancy of 3.5%.
The sponsor is a New York-based private investment firm that specifically focuses on the acquisition of real estate-related debt with the intent to either modify the underlying mortgages or acquire the assets through foreclosure or deed-in-lieu.