Dealmaker: Thorofare Capital Funds $53M In Office, Hotel Loans

Michael Tucker mtucker@mba.org

November 26, 2018


Thorofare Capital, Los Angeles, funded two loans totaling $52.8 million secured by office and hotel properties in Dallas and Miami.

In Dallas the firm provided Brookwood Heritage Square LLC with $35.8 million in short-term first mortgage debt to refinance and stabilize Heritage Square I and II, a 368,000-square-foot Class A office complex.

Heritage Square I and II includes two multi-tenant high-rise buildings 10 miles north of downtown Dallas at the northwest corner of I-635 and the North Dallas Tollway. Nearby amenities include the Dallas Galleria mixed-use development and a Sheraton hotel. Brookwood acquired the property in 2013.

Proceeds from Thorofare's 36-month interest-only financing repaid a maturing loan and provided funds for tenant improvements, leasing commissions and capital expenditures associated with stabilizing the 10- and 11-story buildings. Thorofare closed the loan within 35 days to meet the sponsor's existing loan maturity date.

Thorofare Director of Origination Elliott Young said the firm liked the sponsor's institutional profile and market presence as well as Dallas' strong economic growth forecast. "Brookwood has more than $1 billion in assets under management across the country and an extensive track record of generating upper-quartile investment returns," he said. "Further, at its low-cost basis, Brookwood will be able to offer prospective tenants quality space at attractive rents. The buildings recently underwent renovations that added a full suite of amenities for tenants, setting it apart from nearby office properties."

In downtown Miami, Thorofare funded a $17 million floating-rate bridge loan to refinance The Eurostars Langford Hotel, a 126-room hotel leased on a triple-net basis to Eurostars Hotels, Barcelona, Spain. The transaction closed in less than 10 business days from application to funding, allowing the sponsor to repay a maturing construction loan.

Formerly the Miami National Bank, the 1926-built property joined the National Register of Historic Places in 1989. The Langford's beaux arts architectural style was renovated with a 1920s Jazz Age-inspired design.

Thorofare provided a two-year interest-only loan with an "earn-out" that will be funded upon certain cash-flow milestones being hit.

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