2002 Transactions
Tremont Arranges Financing
for San Antonio Area Manufactured Housing Community
The
Chicago office of Tremont Realty Capital, Inc. arranged
financing for the acquisition of the Mission Trails Manufactured
Housing Community located in San Antonio, Texas.
Tom Lorenzini, Managing Director of Tremont,
arranged the $1,960,000 loan, which was funded through a
New York based conduit program. The 10-year, non-recourse
loan provided for roughly 75% loan to cost with a low 7%
interest rate based upon a 30 year amortization. The property's
196 home sites were roughly 80% occupied at the time of
closing. Amenities include an on-site office, playground,
clubhouse and swimming pool. Tremont was able to structure
the loan without a phase one environmental report and negotiated
an all in fixed fee to cover all third party costs. Given
the lease up potential of the property the borrower did
not want the traditional defeasance prepayment penalty,
in the event ownership decides to recapitalize the project
before loan maturity. As a result a yield maintenance penalty
was elected instead which will allow the borrower to refinance
without incurring the fixed costs of defeasing the loan.
The primary principal behind the transaction was Richard
Nodel of Nodel and Associated based in Southfield, Michigan.
In order to facilitate a 1031 exchange for one of the partners
the borrower entity was actually structured as tenants in
common among two separate partnerships.
For additional information on this transaction,
please contact:
Thomas Lorenzini
Managing Director
Email: tlorenzini@tremontcapital.com
Phone: 312.236.0960
