LOS ANGELES—Thorofare Capital can close loan deals in an extremely condensed time frame of just a few days. It is rare for a lender to close a deal in less than 30 days, let alone less than a week, but the firm has put together a team to manage and close deals that require immediate action. As a result, the firm has significantly boosted its volume this year, and has closed $120 million in the last 60 days alone.
“We have developed this tactical team within our company with experts of certain components of the transaction that typically require 45 to 60 days, and we have put those into overdrive,” Eddie Prosser, director of credit at Thorofare Capital, tells GlobeSt.com. “As a result, we can execute in under a week in certain circumstances.”
While these expedited deals are far from commonplace, there were several examples to prove that they are not random or anomalies. Prosser illustrated the process with an office building deal the firm closed in four business days with a previous client. “We got a call on a Saturday morning from a repeat borrower that needed to close a refinance on their property in effectively four days or would face some pretty intense ramifications,” he says. “We negotiated a term sheet and put together a swat team in our office that day. Three of us flew to the property the next morning, and we ended up getting the deal closed Thursday at 11:58, two minutes before the deadline. It was a very complicated and all-hands on deck deal.”
The fact that this was a repeat bower helped move the deal along, but there were other obstacles the team had to overcome quickly. “The fact that we had underwritten the borrower for another transaction certainly helped expedite that portion of the transaction,” explains Prosser. “There was still all of the property level due diligence to complete and a number of tweaks that needed to be done in addition to all of our own underwriting that we had to do.”
Thorofare has closed other deals in less than a week with borrowers that were not repeat customers, like with a family investment firm that owned an office on a ground lease. They went through the process with JP Morgan, but couldn't close the loan because of the ground lease. Because a significant amount of due diligence had been completed, the firm was able to get through the due diligence and close the deal in five days.
More than 300 of the industry's leading national investors, REITs, banks, private equity firms, asset management firms and other institutions will join us as we explore the market conditions behind the trends at this year's RealShare National Investment & Finance, scheduled for Oct. 5 and 6 at the Roosevelt Hotel in New York City. Learn more.
LOS ANGELES—Thorofare Capital can close loan deals in an extremely condensed time frame of just a few days. It is rare for a lender to close a deal in less than 30 days, let alone less than a week, but the firm has put together a team to manage and close deals that require immediate action. As a result, the firm has significantly boosted its volume this year, and has closed $120 million in the last 60 days alone.
“We have developed this tactical team within our company with experts of certain components of the transaction that typically require 45 to 60 days, and we have put those into overdrive,” Eddie Prosser, director of credit at Thorofare Capital, tells GlobeSt.com. “As a result, we can execute in under a week in certain circumstances.”
While these expedited deals are far from commonplace, there were several examples to prove that they are not random or anomalies. Prosser illustrated the process with an office building deal the firm closed in four business days with a previous client. “We got a call on a Saturday morning from a repeat borrower that needed to close a refinance on their property in effectively four days or would face some pretty intense ramifications,” he says. “We negotiated a term sheet and put together a swat team in our office that day. Three of us flew to the property the next morning, and we ended up getting the deal closed Thursday at 11:58, two minutes before the deadline. It was a very complicated and all-hands on deck deal.”
The fact that this was a repeat bower helped move the deal along, but there were other obstacles the team had to overcome quickly. “The fact that we had underwritten the borrower for another transaction certainly helped expedite that portion of the transaction,” explains Prosser. “There was still all of the property level due diligence to complete and a number of tweaks that needed to be done in addition to all of our own underwriting that we had to do.”
Thorofare has closed other deals in less than a week with borrowers that were not repeat customers, like with a family investment firm that owned an office on a ground lease. They went through the process with
More than 300 of the industry's leading national investors, REITs, banks, private equity firms, asset management firms and other institutions will join us as we explore the market conditions behind the trends at this year's RealShare National Investment & Finance, scheduled for Oct. 5 and 6 at the Roosevelt Hotel in
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