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$22,225,000 Recapitalization Financing
Longmont, CO | June 2022
Thorofare Capital has funded a $22,225,000 short-term, floating rate recapitalization loan for Vivo Longmont, a 210-unit hotel-to-multifamily converted property in Longmont, Colorado.
At the time of closing, the property was undergoing its post-conversion lease-up and was approximately 62% occupied with a steady pipeline of new renters. Vivo Longmont consists primarily of studios ranging from 414 SF to 717 SF and two one-bedroom units at 850 SF and 985 SF, respectively.
The sponsor utilized the flexible, interest-only financing to repay its construction loan, repay its mezzanine loan and fund the remaining of the carry costs through stabilization. Additional loan proceeds may be used for continued common area upgrades and TIs/LCs for an on-site F&B outlet.
The Longmont/Northwest Boulder County multifamily submarket has remained stable over the past 12 months from the time of loan origination. At closing, the submarket vacancy was 3.9% with positive net absorption remaining flat despite recent deliveries. 12 month asking rent growth has increased by over 10.0% in the past year, which is significantly higher than historical annual rent growth of 4.4%
The loan carries an initial term of two years with one extension option subject to performance milestones and includes a future-funding structure of proposed CapEx , with a flexible prepayment window.
The sponsor is a Southern California-based private investment firm with a successful track record of converting hospitality to multifamily assets. The sponsor specializes in hospitality conversions and currently owns and operates 20 multifamily properties totaling approximately 3,000 units.