Dealmaker: Thorofare Capital Funds $15M on Coasts

Thorofare Capital, Los Angeles, funded two loans totaling $14.9 million secured by a historic Los Angeles office building and a Brooklyn, N.Y. hotel.

In California, Thorofare lent $7.4 million to RedCar Properties Ltd. to refinance and re-develop a 24,000-square-foot creative office building that includes 10,200 square feet of ground floor retail.

At 759 N. Spring Street in Chinatown’s upper main district, the property is among the oldest existing buildings in L.A.’s industrial boom of the late 19th century. Built in the 1880s and expanded in 1925, the building originally served as a manufacturing facility for the Western Furniture Co.

The non-recourse, fixed-rate bridge loan carries an initial 18-month term and includes two six-month extension options. The interest-only loan structure includes a debt service reserve to fund operating deficits and interest payments during the re-development period.

Thorofare also funded a $7.5 million fixed-rate mortgage secured by a 56-room Quality Inn in Brooklyn that delivered in April 2015.

The New York-based sponsor used the cash-out refinancing to retire construction debt and repatriate equity, which it plans to invest in a similar hotel construction project. The 18-month interest-only financing sized to 65 percent LTV includes two six-month extension options.

The property features strong frontage along Chester Street and major retail thoroughfare Pitkin Avenue. It has a 15-year licensing agreement with Choice Hotels International.