2002 Transactions
Tremont Arranges $5,000,000
Financing for 3 Furnished Apartment Buildings
Rick Gallitto and Callie Ensley-Smith of the Boston office
of Tremont Realty Capital have arranged $5 million of permanent
financing for a local developer. The refinance was for three
furnished rental apartment buildings containing 46 units
located in the South End neighborhood of Boston. Tremont
secured the financing through one of its major bank relationships.
The three buildings are operated as extended stay furnished
apartment rentals.
"The property type posed a bit of a challenge"
said Callie Ensley-Smith. "As a hybrid between standard
apartment buildings and extended stay hotels, many lenders
wanted to take the conservative approach by underwriting
the properties strictly as extended stay hotels. The reserves
alone would have killed proceeds and thus the deal. Therefore,
we had to seek out a lender willing to underwrite the properties
based on their actual use. Tremont developed an underwriting
that took the combined NOI checked by a stress test analysis
based on an alternative use, unfurnished apartments, NOI".
A national bank relationship of Tremont's had financed similar
projects in the past, and with local market knowledge provided
by Tremont, were able to get their arms around this transaction
as well. According to Executive Director Rick Gallitto,
"Our client was very pleased with the overall debt
structure which allowed them to free up equity to pursue
new opportunities."
For additional information on this transaction, please contact:
Richard Gallitto
Executive Director
Email: rgallitto@tremontcapital.com
Phone: 617.867.0700 x772
Callie Ensley-Smith
Executive Vice President
Email: cesmith@tremontcapital.com
Phone: 617.867.0700 x779
