Los Angeles-based Thorofare Capital has provided an affiliate of Arciterra Group with a $32.5 million floating rate commercial mortgage for the acquisition of Castleton Square & Commons, a 256,582 sq ft shopping center in Indianapolis, Indiana, Real Estate Capital has learned.
The two-year, floating rate, non-recourse, interest only financing includes two, six-month extension options, a flexible pre-payment structure and was sized to 82% of the total project capitalization.
The loan was made out of Thorofare’s TC Debt Opportunities, a joint venture investment fund with DoubleLine Capital that primarily originates floating rate, senior bridge loans and has a target deployment capitalization of $450 million.
Launched in the summer of last year, the new vehicle comes in addition to the firm’s existing fixed rate funds, which invest primarily in higher-yielding bridge loans, the most recent being Thorofare Asset Based Lending Fund III (Fund III).
Castleton Square & Commons is located on Castleton Corner Drive at the I-465 Highway exit in one of the most prominent retail nodes in Indianapolis. The property benefits from a mix of national tenants including REI, Golfsmith, Dave & Buster’s, Haverty’s Furniture, Buffalo Wild Wings and DXL Casual Male.
The sponsor signed two new leases totaling 12,110 sq ft from the time of loan application to closing, making the property 94% percent leased at closing. The seller was an affiliate of Ann Arbor, Michigan-based McKinley, Inc.
Thorofare capitalizes its transactions through a series of private, closed-end funds and managed accounts on behalf of high net worth and institutional investors, having funded more than $675 million across 28 states since 2011.
The firm focuses on $3-$30 million financings, targeting value-add and opportunistic acquisitions, recapitalizations, and distressed debt secured by transitional properties.