Thorofare Capital Parks $19M in Financing on Downtown Philly Garage Portfolio
Thorofare Capital has closed $19.1 million in acquisition and lease-up financing for two Philadelphia parking garages, Commercial Observer can first report.
The financing was provided to San Antonio, Texas-based GrayStreet Partners, and closed within 15 days. JLL’s Cullen Aderhold — based in the brokerage’s Dallas office — negotiated the debt.
The two assets comprise more than 796 parking spaces.
The Cube is a recently upgraded, 226,000-square-foot, subterranean parking garage. It houses 576 parking spaces directly below 487 residential condos in Philadelphia’s Washington Square neighborhood. Society Hill and the area surrounding the asset is regarded as one of the most desirable neighborhoods in the city, and enables The Cube to achieve some of the highest monthly parking rates as well as a high volume of daily parkers, due to the surrounding medical, office and tourism-related businesses and destinations. JLL’s Doug Rodio and Brett Segal led the sale.
The second property — at 1612-34 Chancellor Street — is part of a brand-new, mixed-use Hyatt Centric project, adjacent to Rittenhouse Square, and features a state-of-the-art parking facility with 220 spaces. The 332-room hotel opened in November 2020 and boasts skyline views. JLL’s Colin Behr negotiated the sale.
Both parking garages offer stable and strong demand drivers with high barriers to entry. The acquisitions closed just as the world begins its reopening — 14 months after COVID darkened U.S. shores — and office and residential tenants return to urban locations.
“We are thrilled to close our second financing this month with GrayStreet Partners and to assist this client in acquiring these properties with a 15-day loan closing,” David Perlman, head of Thorofare’s New York office and the lead originator on the deal, said. “Being our first financing in Philadelphia proper, and in Pennsylvania in general, this transaction hopefully leads to more opportunities in this dynamic Northeast market as we grow our platform on the Eastern seaboard.”
“This financing offers an attractive, risk-adjusted return for our portfolio and within a market that is heavily supply-constrained for parking,” Brendan Miller, Thorofare’s Chief Investment Officer, added. “GrayStreet Partners’ specialized parking investment strategy and experience will help revitalize The Cube parking facility and unlock revenue for both assets as the country emerges from the COVID pandemic.”
Indeed, GrayStreet has extensive experience in owning, operating and managing parking facilities. Formed in 2009, its portfolio currently includes more than 15 parking garages.
Thorofare’s had an active month. Only last week, CO reported that the lender had provided a bridge loan for 251 Flagler Street in Miami to allow for a seamless sale of the property.
GrayStreet officials weren’t immediately available for comment.