2003 Transactions
Tremont Arranges $8,000,000
Preferred Equity Investment in Industrial Portfolio
The
Boston office of Tremont Realty Capital arranged an $8,000,000
preferred equity investment in a 23-property portfolio of
industrial properties located in Texas, New Mexico, and
Florida. The new investment allowed the sponsor to pay off
an existing mezzanine loan (which freed-up the cash flow
that would have gone toward mezzanine amortization) and
recoup some sponsor equity.
David Ross and Rick Gallitto, Senior Director and Executive
Director at Tremont, arranged the $8,000,000 preferred equity
investment with an institutional investor. The three-year
preferred equity investment provided the sponsor with aggregate
leverage in excess of 90% and provided a capitalization
structure that allowed the sponsor to retain more cash flow
from the portfolio. The investment is non-recourse to the
sponsor. Tremont had arranged the acquisition financing
(both senior and mezzanine) in October of 2002. According
to David Ross, "The sponsor was able to capitalize
on Tremont's ability to structure a high leverage acquisition
and roll-up financing last October and came back to Tremont
for assistance in massaging the capital structure to a capitalization
model that was more appropriate for the now somewhat seasoned
portfolio, which provided the sponsor with greater leverage
and more operating cash flow".
For additional information on this transaction, please contact:
David Ross
Managing Director
Email: dross@tremontcapital.com
Phone: 617.867.0700 x773
Richard Gallitto
Executive Director
Email: rgallitto@tremontcapital.com
Phone: 617.867.0700 x772
