2002 Transactions
Tremont Arranges Financing
for Four Rio Grande Valley Manufactured Housing Communities
Tremont Realty Capital, Inc. arranged financing for the
acquisition of four manufactured housing communities located
in the Rio Grande Valley of Texas. Two of the properties,
Homestead Ranch and The Homestead, are located in McAllen,
Texas. The other two, Trail's End and Leisure World, are
located in Weslaco, Texas.
Tom Lorenzini, Managing Director of Tremont,
structured the financing as two individual loans totaling
$8,472,000, which were funded through a conduit loan program.
A $5,832,000 loan was provided for the two Weslaco properties.
Leisure World and Trail's End are both age-restricted communities,
which were built in the 1970's. Jointly, there are approximately
500 home sites and 227 park model/RV sites. At loan closing,
the homesites were approximately 85% leased. Both properties
have complete amenity packages including pools, clubhouses,
shuffleboard courts, billiard rooms and recreational halls
with full kitchens. The 10-year, non-recourse loan provided
for approximately 85% loan to cost with a low 6% interest
rate based upon a 30-year amortization. The Homestead and
Homestead Ranch communities secure the second loan, which
totaled $2,640,000. This loan was also a non-recourse conduit
loan, which provided for 80% loan-to-cost with a low 6%
interest rate amortized over 30-years. In addition, both
loans were structured without a replacement reserve escrow
account, the absence of which provides for additional cash
flow to the borrowing entity. In total the two McAllen properties
have 223 home sites and 61 RV sites. Both of these family
communities were built in the 1970's and have a combined
occupancy of about 90%. Amenities include a swimming pool,
playground, basketball court, club house and shuffleboard
courts.
For additional information on this transaction, please contact:
Thomas Lorenzini
Managing Director
Email: tlorenzini@tremontcapital.com
Phone: 312.236.0960
