Thorofare Capital is expanding its seniors housing bridge lending program and recently closed a $13 million loan on behalf of a 277-unit assisted/independent living community in North Phoenix, Arizona. The floating-rate loan, with a two-year term of interest only payments, provides an initial advance of $10 million to repay the construction loan and also funds reserves while the community leases up. There was also $3 million withheld for the future renovations and performance-based earn-outs. The borrower, a Southern California-based real estate investor, acquired the property out of a bank’s REO portfolio in 2015 when it was an Embassy Suites Hotel. They then converted the building in 2016 to feature 184 IL and 93 AL units, in addition to multiple recreation rooms, a tennis court, large pool and outdoor patio space.
This is Thorofare Capital’s second seniors housing loan in the Phoenix area, having previously funded a $19 million bridge loan for a 135-bed assisted living community in the Arcadia sub-market. MorningStar Senior Living operates the property.