Thorofare Capital refinances class A multifamily property in San Diego
San Diego, Ca Thorofare Capital, Inc., an affiliate of asset management platform Callodine Group, provided a $26 million loan to Chapman Place LLC for the refinancing and lease-up of Chapman Place Apartments Point Loma submarket. The transaction closed on January 11th, 2024.
Chapman Place is a three-story, newly built multifamily property, built to condo-level finishes with a variety of amenities, located at 3910 Chapman St. near SeaWorld and Midway Rising’s planned Sports Arena development project.
Thorofare’s floating rate, short-term bridge loan will provide the borrower, a private investor, with runway to lease up and stabilize occupancy. The property was 25% leased at the time of loan closing, with most of the loan proceeds utilized to retire the original construction loan. Chapman Place is managed by third-party property management company Southwest Equity Partners, which brings experience owning and managing more than 3,000 units in San Diego.
The class A property consists of 82 multifamily units, composed of a mix of 40 studios, 36 one-bedrooms, and six two-bedroom units with an average unit size of 584 s/f.
Thorofare has experience lending on multifamily assets in the Point Loma sub-market. In December 2020, Thorofare provided Next Space Development with a $13.75 million senior loan to refinance, at the time, a recently built Class A, 36-unit project called Nimitz Crossing (1.1 miles from the property). Like Chapman Place, Nimitz Crossing was recently delivered and going through lease-up at the time of Thorofare’s funding.
Thorofare’s Andrew Kim, director of originations in the company’s Los Angeles office, originated the loan with transaction execution from associate, Paul Hachigian, and managing director of Credit, Jacob Yi.
Thorofare closed 19 loans in 2023, exceeding $623 million of total new originations and bringing the company’s total CRE loan origination volume to $4.6 billion since inception.
More than $1 trillion of multifamily-secured loans are set to mature by 2028, according to Trepp, Inc., and reports from the Federal Reserve.
Kevin Heisser, CEO, and managing partner Jonathan Fulton, of Capital Partners, Inc. in Westlake Village, CA represented Chapman Place LLC in arranging the financing.