Thorofare Capital Refis Atlanta Multifamily Asset With $52M Loan
By Cathy Cunningham July 17, 2023 8:00 am
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It may be the dog days of summer, and a market that makes you want to head straight to the beach — or the cooler — instead of the office. But the deals keep closing.
McKinley Homes just landed $52 million in financing for the refinance and lease-up of Seven88, its multifamily tower in Atlanta’s Midtown West submarket, Commercial Observer has learned.
Thorofare Capital provided the loan for the 279-unit, Class A tower, with loan proceeds retiring previous financing on the asset and also funding the lease-up of 142 of its units. Meridian Capital Group’s Drew Anderman, Ben Nevid,Naphtali Marrus, Elliot Braude and Calahan Martin negotiated the debt.
David Perlman, head of Thorofare’s New York office, originated the loan, along with colleagues Edward Prosser and Scott Sumida.
“Seven88 is the premier residential product in the fast-growing Midtown West submarket of Atlanta,” Perlman said in prepared remarks. “The project stands to benefit from the ongoing migration of office and residential tenants to this market. … The property is adjacent to the restaurant and bar scene of Georgia Tech University and is a quick walk from the bulk of the university’s campus as well as numerous office buildings that have sprung up in the area and have attracted tier 1 tenants.”
Construction on the 22-story asset — at 788 West Marietta Street NW and roughly three miles from Downtown Atlanta — wrapped in 2020. Building amenities include a pool, a dog park, a clubhouse, a lounge, a spa and a fitness center.
Originally developed as a luxury condo building, the developer sold 113 units before sealing a $80.5 million refinance with Cerberus Capital Management in June 2021, Multi Housing News reported. Now pivoting the remaining units’ use to multifamily, Atlanta-based McKinley will use Thorofare’s loan to lease up the remaining units as rentals.
“We are pleased to partner with Thorofare Capital on the refinancing and lease-up of our Class A multifamily tower in the West Midtown of Atlanta,” Jinsong Yang, managing member of McKinley Homes, said in a release. “This financing will provide us with the flexibility and resources to further enhance and market our premier residential product, Seven88. We are confident that this investment will capitalize on the strong demand for high-quality housing in this fast-growing market.”
They say seven is a lucky number, and this deal marks Thorofare’s seventh deal closing this year. The Los Angeles-headquartered lender originated $692 million in loans last year, and tied a bow on Seven88 in just over 30 days.
Thorofare’s Prosser, a principal and head of credit at the firm, said “the collateral relative to its competitive set is well positioned to lease and will offer residents a beautiful place to live, and at great price point.”
“We are delighted to successfully close this financing with McKinley Homes and Thorofare, which will allow our client to finish leasing at the property and execute their business plan,” Nevid added.
Cathy Cunningham can be reached at ccunningham@commercialobserver.com
