LOS ANGELES, CA - Thorofare Capital has announced that it has recently funded a $7.9 million recapitalization loan for a 31,452 square foot, class “A” grocery-anchored retail property in the Edgewater area of
The value-add transaction was complex as there were multiple existing lenders negotiating the significant discounted payoff and the financing was subject to two new leases being executed prior to closing in order to increase the occupancy to 75%. The new tenants, Sleepy’s and Nova Spinal Care, have signed long-term leases and will take occupancy immediately upon delivery of the finished interiors. The property’s anchor is Aldi, an investment grade grocer, occupies 50% of the available space. Aldi grossed over $53 billion in global revenue and owns The Trader Joes Company.
There will be approximately 25% vacancy, which is being marketed for lease by CBRE. Eugene Rutenberg, Thorofare Sr. Analyst comments, “More than $1 million of the financing proceeds will be used for the lease-up costs associated with the two brand new leases as well as the remaining 7,000 square feet of vacant space that once leased will contribute a significant amount of revenue and value.”
The property borders the neighborhoods of Edgewater and Rogers Park off of Sheridan Road. The grocery-anchored retail property is located on the ground floor of Clarovista, a 160-unit luxury condominium project. Clarovista is located half a block from the Chicago City Transit Authority (CTA) train and bus stops, steps away from Loyola University, three blocks from Sheridan Drive and Lake Michigan as well as four miles away from Northwestern University campus. The property enjoys the benefit of a population in excess of 350,000 within a three mile radius.
Thorofare SVP Felix Gutnikov adds, “With the closing of this transaction, our total volume of loans closed in Chicago exceeds $45 million for 2013. We are pleased with our success in Chicago to date and we’ll continue seeking well secured debt investments in the market”.
About Thorofare Capital: Thorofare Capital, Inc. (“Thorofare”) is a direct portfolio lender specializing in short term commercial real estate loans. Thorofare is currently deploying capital from its third discretionary real estate debt fund, targeting investments between $2 million to $25 million in primary and secondary US markets. The firm will also consider select transactions with strong components in tertiary markets. Thorofare is based in Downtown Los Angeles.
For more information, please contact:
Felix M. Gutnikov | email@example.com | (213) 873-4007