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Park Lane Villas East

Park Lane Villas East

$27,000,000 Acquisition Financing

Santa Rosa, CA | June 2022

Thorofare Capital has funded a $27,000,000 short-term bridge loan for the value-add acquisition of Park Lane Villas East. The loan closed in just 10 days upon a signed loan application, to assist the borrower in meeting its 1031 exchange deadline.

The property is a 98%-occupied, 2007‐built, 100‐unit, garden‐style apartment community, which was sold by the U.S. Marshall Service in a marketed process through a national brokerage company.

Park Lane Villas East was built in 2007 along with Park Lane Villas West (not part of the transaction) as luxury residential condominiums. Park Lane Villas East has operated as a rental apartment while Park Lane Villas West were sold off as individual condominiums.

The property offers 2‐ and 3‐bedroom flats in three-story elevatored buildings. The ground floor has three commercial units totaling 2,715 SF.

Thorofare provided a competitively priced floating rate, interest-only, one-year loan that includes a performance test-based extension option.

Santa Rosa is a supply constrained market that saw a 7.9% increase in asking rent growth over the last twelve months and had a vacancy rate of under 2.0% at the time of loan origination.

A major draw to Santa Rosa is Sonoma Valley, which has solidified itself as a tourist magnet in the past decade. Its economy is also closely tied to that of the Bay Area, which provides regular demand for local wine and tourism industries.

The majority of the top 10 employers in the metro are tied to health and education sectors. Kaiser Permanente has recently just constructed a new facility and opened 2,600 full‐time opportunities for Santa Rosa.

The sponsor is a Sonoma County-based, private real estate investor that owns and manages over 15 multifamily properties in the Sonoma County and the Bay Area.