2002 Transactions
Tremont Arranges $3,800,000
Financing for the Idlewood/Oakland Ridge MHCs
The Annapolis office of Tremont Realty Capital, Inc. arranged
financing for the refinance of the Idlewood/Oakland Ridge
MHCs, two manufactured housing communities offering a combined
150 homesites. Idlewood is located outside Syracuse in Irkville,
NY and Oakland Ridge is located in Riverhead, New York on
Long Island.
John Chase, a Senior Director with Tremont,
arranged the fixed-rate loan, which was funded through a
Midwest Bank. The 10-year, non-recourse loan provided for
roughly 80% loan to value with a sub-7% interest rate. The
property was 100% occupied at the time of closing. The loan
also included an earn-out structure, allowing the borrower
to draw an additional $500,000 in loan proceeds over a three-year
period for value creation resulting from rent increases.
The 10-year term included an open pre-payment ability after
only two years. According to John Chase, "We accomplished
several goals for the borrower with this placement including
cash-out at closing, non-recourse structure, the ability
to earn-out additional proceeds and the option to refinance
after only two years of the 10 year commitment with no prepayment
fees."
For additional information on this transaction,
please contact:
John Chase
Senior Director
Email: jchase@tremontcapital.com
Phone: 410.604.1744
