Thorofare Capital Markets LA Arts District Property in Foreclosure Sale
By Nick Trombola January 23, 2024 2:55 pm
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Los Angeles-based lender Thorofare Capital is selling a historic property in the heart of Downtown Los Angeles’ Arts District.
The property, dubbed AtTraction, includes 58,118 square feet in two adjacent buildings at 800 and 810 Traction Avenue. It is being listed via foreclosure sale, as the property was transferred to Thorofare from former owners LIVWRK by deed in lieu of foreclosure.
Livwrk purchased the property in late 2021 from DLJ Real Estate Capital Partners for $19.5 million, according to property records. Thorofare had provided $17.5 million in acquisition financing that September. The 18-month, interest-only loan included two extension options.
Before the property was transferred back to Thorofare, Livwrk was in the middle of an adaptive reuse plan to renovate the space into a Class A office and “lifestyle” project, according to Cushman & Wakefield (CWK), which is marketing the asset for sale. Some of those recent renovations include a new exterior facade and entrances, as well as a rooftop patio deck. The building at 800 Traction Avenue is five-stories, while the building at 810 Traction Avenue is two stories, according to a listing on Livwrk’s website.
“The deal structure, offering an opportunity to buy the Arts Districts’ crown jewel at a basis comparable to the former lender’s, combined with the optionality for seller financing, creates a one-of-a-kind buying opportunity for an investor or user. … The buyer can benefit from finalizing a redevelopment of the project on third base, given millions of dollars have already been spent on many of the base building elements to date, creating substantial additional value,” Cushman & Wakefield Vice Chair Mike Condon Jr. said.
AtTraction is now the second project in L.A. that Livwrk has had to walk away from in recent years. Back in late 2020, Livwrk and developer DFH Partners agreed to buy the Baldwin Hills Crenshaw Plaza mall for $110 million, though the companies failed to make payments after 60 days and a 10-day extension, which resulted in previous owners Capri Urban Investors nixing the deal, according to The Real Deal at the time. Livwrk could not immediately be reached for comment.
Business at Thorofare has lately been much more fruitful by comparison. The lender ended 2023 with a $24.7 million refinancing loan to Palladium Group for a multifamily complex in Philadelphia, bringing Thorofare’s yearly deal volume to $623 million in originations across 19 loan transactions.
Nick Trombola can be reached at NTrombola@commercialobserver.com.
