Thorofare Capital provides non-recourse, floating-rate financing
for leading Chicago developer
CHICAGO (Nov. 13, 2018) — Mission Capital Advisors announced that its Debt and Equity Finance Group has arranged $13 million of non-recourse, floating-rate financing on behalf of an affiliate of the Sterling Organization to recapitalize 110 East Pearson Street, a 9,000-square-foot vacant retail property in the heart of the Magnificent Mile section of Chicago.
Jonathan More, Alex Draganiuk, Lexington Henn, and Justin Hunt of the Mission Capital team secured the loan from Thorofare Capital, a Los Angeles-based national commercial real estate loan origination and servicing company. The loan features a competitive leverage level with flexibility for future capital expense funding and leasing terms and will be used to capitalize the property, lease up the available space and implement significant capital improvements.
Currently vacant, the property consists of 7,303 square feet of ground-floor retail space and 1,789 square feet of retail space on the mezzanine level. For Mission Capital Advisors, the transaction reflects the firm’s ability to find appropriate capital providers for innovative developers across the country.
Thorofare’s willingness to provide financing stemmed from the firm’s recognition of the sponsor’s strong track record in value-add retail, as well the property’s desirable location, according to Felix Gutnikov, Thorofare’s Head of Origination.
“As a trusted lender, Thorofare has enjoyed a very positive relationship with Mission Capital Advisors and has completed several transactions with the firm and its clients,” Gutnikov said. “We were able to offer Sterling Organization a structured financing solution for a well-located retail asset within one of the most recognized shopping districts in the country.”
The property is ideally situated in the heart of Chicago’s Magnificent Mile, the city’s largest and most vibrant shopping district, which has approximately $1.9 billion of annual retail sales. Over the past year, the district has seen retail vacancies decline, while rents have grown by nearly seven percent, further underscoring the property’s latent potential.
About Mission Capital Advisors
Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real estate capital markets solutions firm with offices in New York, Florida, Texas, California and Alabama. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across commercial and residential loan sales; debt, mezzanine and JV equity placement; and loan portfolio valuation. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $65 billion of loan sale and financing transactions, as well as in excess of $14 billion of Fannie Mae and Freddie Mac transactions, positioning the firm strongly to provide unmatched loan portfolio valuation services for both commercial and residential assets. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business objectives while maintaining the highest levels of integrity and trust. For more information, visit www.missioncap.com.
About Thorofare Capital
Thorofare Capital, Inc. is a national commercial real estate loan origination and servicing company. The firm focuses on $5 million to $100 million financing transactions, targeting value-add and opportunistic acquisitions, recapitalizations, and distressed debt secured by transitional properties. Its affiliate, Thorofare LLC, is an SEC Registered Investment Adviser specializing in alternative fixed-income opportunities through US commercial real estate debt investments. With a national presence, Thorofare has invested more than $1.6 billion structured as senior secured short and intermediate-term loans, across 10+ property types throughout 28 states. For more information, visit www.thorofarecapital.com.