Innovative Strategies. Redefining Performance.

We continue to practice the ethos instilled within our organization from the beginning.

Our approach to commercial real estate lending is to build long-term relationships by providing a transparent, reliable and swift process to our clients. With ongoing fluctuations in the capital markets, we seek to deliver superior risk-adjusted returns to our investors while our borrowers benefit from consistent certainty of execution. This philosophy has remained unchanged since our founding in 2010.

Multi-Strategy Debt Platform

Through a series of funds, joint ventures, and separate accounts, Thorofare originates opportunistic, value-add, and core-plus loans.

  • Short-Term Bridge Loans Opportunistic

    • Loan Amounts

      $10MM to $100MM

    • Term (Years)

      1+1 or 2+1

    • Interest Rates

      1-Month LIBOR + 600-800bps
      Fixed Rates Available

    • Description

      Special situations, quick-closings, NPL/REO auction acquisitions, DPOs or "heavy-lift" CapEx projects

  • Intermediate-Term Whole Loans Value-add

    • Loan Amounts

      $15MM to $60MM

    • Term (Years)

      2+1 or 2+1+1 or 3+1+1

    • Interest Rates

      1-Month LIBOR + 450-550bps

    • Description

      Floating rate whole loans for experienced sponsors acquiring or recapitalizing transitional properties through future-funded CapEx, TIs and LCs.

  • Institutional Loans Core+

    • Loan Amounts

      $25MM to $75MM

    • Term (Years)

      3+1+1 or 4+1

    • Interest Rates

      1-Month LIBOR + 350-450bps

    • Description

      Larger loan sizes for institutional-quality properties with near-stabilized cash flow profiles

  • Core+:

    Institutional-like properties that have cash-flow and are considered “light” repositioning or are in a transitional phase e.g. leases rolling within the next 1-3 years and need to have structure before being refinanced with permanent CMBS, LifeCo., bank or GSE financing.

  • Value-Add:

    Opportunities where we finance the acquisition of a property that has leasing of vacancy or below-market in-place rents and qualified borrowers seek to add value by completion a renovation or improving management to maximize cash-flow through a well-capitalized TI/LC budget or CapEx budget. These are loans that start with 2-3 years of initial term followed by 1-3 one-year extension options totaling 5 years of total loan term. Renovation and leasing costs are "future funded".

  • Opportunistic:

    Typically time-constrained, quick-close special situations such as auction acquisitions, discounted loan payoffs (DPOs), non-performing loan (NPLs) acquisitions, 1031 exchange or maturing loan deadlines where qualified borrowers need a reliable, balance sheet lender to offer certainty of execution and prepayment flexibility. Also, projects that are considered “heavy lifts”, where CapEx future funding may exceed 50% of the total loan commitment, or a cash-flow shortfall (due to in-place occupancy at the time of loan closing or a completely vacant asset) requiring a full interest reserve funded at closing.

Short-term Bridge Loans

Eligible Properties/Assets

  • Multifamily
  • Performing or Non-performing Loans
  • Grocery/Pharmacy-anchored Retail
  • Data Centers
  • Light Industrial & Warehouse
  • Self-storage
  • Independent Living & Assisted Living
  • Condominium Inventory
  • Mobile Home Communities

Target Transactions

  • Opportunistic Acquisition Financing
  • "Quick Close" Special Situations
  • REO & NPL Acquisitions
  • Recapitalizations & LP Buyout
  • 1031 Exchange Deadlines
  • Significant Renovation
  • Minimal Yield Maintenance

Financing Parameters

Timing to Close 5-20 days from application
Loan Size $10 million to $100 million
LTV Up to 65% LTV (maximum advance to 75% LTV with inclusion of "B Note," or Mezzanine Financing in structured transactions)
Lien Position First Mortgage or Deed of Trust or Note Hypothecation for Note-on-Note Financing
Loan Term 1 to 3 years
Extensions 6 to 12 months, available at market extension fees
Interest Rate 1-Month LIBOR + 600-800bps; ability to PIK/accrue to maturity; fixed rates available
Amortization Interest-only, additional structure/sweeps may be required on a case-by-case basis
Debt Yield Below 1.0X DSCR acceptable if supported by a Debt Service Reserve, cash-flowing assets preferred
Yield Maintenance Minimal pre-payment penalty, generally 1/2 of initial term
Recourse Non-recourse, other than standard "bad boy acts" or Recourse structure for higher risk transactions
TI/LC Facility Future funding facility towards tenant improvements and leasing commissions
CapEx Holdack Holdbacks for renovations, with timely review and disbursements typically occurring within 10 days after submission of a complete draw request package
Deposits Expense deposit adequate to cover third party reports, legal fees and other customary due diligence or underwriting costs
Origination & Exit Fees Market competitive fees adjusted to loan size, timing and complexity

Intermediate-term Whole Loans

Eligible Properties

  • Light Industrial & Warehouse
  • Multifamily
  • Office
  • Grocery-anchored Retail
  • Self-storage
  • Data Centers

Target Transactions

  • Value-add Acquisitions
  • Lease-up or Upcoming Rollover
  • Partnership Recapitalizations
  • Bridge-To-Sale Refinance
  • 5-Year CMBS 2.0 Maturity / Transition

Financing Parameters

Timing to Close 25-40 Days from application
Loan Size $15 million to $60 million
LTV Up to 75% LTV "as-stabilized" / 80% LTC of total project costs
Lien Position First Mortgage or Deed of Trust
Loan Term 2, 3, or 4 year initial term (5 year maximum, including extensions)
Extensions Multiple 1 Year or 6 Month extensions, subject to performance hurdles
Interest Rate 1-Month LIBOR + 450-550bps; ability to PIK/accrue to maturity
Amortization Interest-only
Debt Yield Below 1.0X DSCR acceptable if supported by a Debt Service Reserve
Yield Maintenance Typically 50% of the Loan Term; with exceptions on a case-by-case basis
Recourse Non-recourse, other than standard “bad boy acts”; heavier CapEx may require a Completion Guaranty
TI/LC Facility Future funding of up to 100% of tenant improvements and leasing commissions
CapEx Holdack Holdbacks for renovations with timely review and disbursements typically occurring after submission of a complete draw request package
Deposits Expense deposit adequate to cover third party reports, legal fees and other customary deal costs
Origination & Exit Fees Market competitive fees adjusted to loan size, timing and complexity

Institutional Loans

Eligible Properties

  • Light Industrial & Warehouse
  • Multifamily
  • Office
  • Grocery-anchored Retail
  • Self-storage

Target Transactions

  • Acquisitions
  • Light Transitional
  • Value-add CapEx Repositioning
  • TIs/LCs Future Funding for Leasing
  • Structuring for Expiring Leases

Financing Parameters

Timing to Close 30-45 days from application
Loan Size $25 million to $75 million
LTV Up to 75% LTV “as-stabilized” / 80% LTC of total project costs
Lien Position Senior secured first mortgage or deed of trust
Loan Term 2, 3, or 4 year initial term (5 year maximum, including extensions)
Extensions Multiple 1 Year extensions, subject to performance hurdles
Interest Rate 1-Month LIBOR + 350-450bps; ability to PIK/accrue to maturity
Amortization Interest-only
Debt Yield Below 1.0X DSCR acceptable if supported by a Debt Service Reserve
Yield Maintenance Pre-payable at any time subject to yield maintenance equal to 25% to 50% of the Loan Term
Recourse Non-recourse, with standard carve-outs
TI/LC Facility Future funding facility towards future tenant improvements and leasing commissions
CapEx Holdbacks Holdbacks for renovations with timely review and disbursements
App Deposit Expense deposit adequate to cover third party reports, legal fees and other customary deal costs
Origination & Exit Fees Market competitive fees adjusted to loan size, timing and complexity