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$16,550,000 Acquisition & CapEx Financing
Torrance, CA | October 2021
Thorofare Capital has funded an $16,550,000 acquisition and re-development bridge loan for the hotel-to-multifamily conversion of Vivo Torrance, a 108-unit project on Pacific Coast Highway in Torrance, California.
The project is well-parked at 1.09-spaces per unit and stands to benefit from the area’s high density, proximity to major transportation artilleries and lack of affordable housing.
The to-be-converted, 41,762 SF Class B multifamily asset will feature a mix of studios, 1-bedroom units with a den, 2-bedroom units, and five affordable units with an average unit size of 336 square feet. In addition to the 108-units, Vivo Torrance includes a 5,500 square foot leased restaurant space.
The South Bay multifamily submarket is one of the strongest in the Los Angeles metro. Cities like Torrance, Carson, Hathorne, and Gardena in the South Bay submarket offer relative affordability given its near-costal location.
The vacancy is currently 2.5% and sub-2.0% for Class B and Class C product. The South Bay market benefits from strong local demand drivers with ties to the aerospace, automotive, and energy sectors.
The 30-month, interest-only loan includes an extension option and economic incentives for the borrower upon certificate of occupancy as well as successful cash-flow milestones.
The sponsor is a Los Angeles-based, full-service private real estate investment and management company that specializes in converting low-demand hotels to efficiency apartment complexes at market-rate pricing to renters while reducing traffic, waste and sprawl.