LOS ANGELES – Thorofare Capital has recently funded a $3,500,000 acquisition loan for the purchase of 540 North LaSalle Street, Chicago, IL. The sponsor purchased the property in a bankruptcy auction for a price of $6,350,000. 540 N. LaSalle is a 7-story historic mixed-use building containing approximately 65,140 square feet of gross building area comprised of 56,140 square feet of above grade office/retail space and 9,000 square feet of lower level space, located in heart of the River North submarket of downtown Chicago. The transaction closed in just five days of application. The sponsor plans to occupy space in the building while aggressively leasing the remainder of the space to office and retail tenants.
The sponsor, a venture owned by a Chicago-based attorney, was competing to purchase the property in a bankruptcy proceeding in which another entity had already secured a contract from the debtor to purchase the property subject to the Court’s approval. To become the purchaser, the sponsor first had to persuade the bankruptcy judge to hold an auction for the sale of the property instead of approving the existing contract. Then, to win the auction, the sponsor had to present evidence to the Court that she could close on the purchase within five days after the auction, which was the closing date specified in her competitor’s contract.
The property is currently vacant and zoned DX-7, Downtown Mixed-use District. The property generates significant revenue from a 52' x 62' billboard sign located on the south elevation of the building. River North is located steps away from The Magnificent Mile and the Chicago Loop and offers superb access to amenities, including world-class restaurants, nightclubs, specialty retailers and art galleries. Further, the area benefits from strong rents and solid office fundamentals as companies move away from the Loop to enjoy the amenities of River North. 1723 N. Halsted, a single tenant restaurant building, is currently occupied by Alinea (a 3 star Michelin Restaurant) and is owned free and clear of debt.
Despite having interest from multiple conventional lenders, the borrower required a fast-paced lender that could finance the acquisition within a one-week time frame to meet the deadline for the bankruptcy auction opportunity. Thorofare provided unparalleled certainty of execution, flexible pre-payment options, and competitive pricing
About Thorofare Capital: Thorofare Capital, Inc. (“Thorofare”) is a direct portfolio lender specializing in short term commercial real estate loans. Thorofare is currently deploying capital from its second discretionary real estate debt fund, targeting investments between $2 million to $25 million in primary and secondary US markets. The firm will also consider select transactions with strong components in tertiary markets. Thorofare is based in Downtown Los Angeles.
For more information, please contact:
Felix M. Gutnikov | [email protected] | (213) 873-4007