2002 Transactions

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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