2004 Transactions
Tremont Structures Mezzanine
Loan for $10,000,000 Massachusetts Condo Project
The
Boston office of Tremont Realty Capital, structured a $1,750,000
mezzanine loan to bolt in with a construction loan and provided
the bulk of capital required for the development of a 28-unit
townhouse condominium subdivision located at 545 Newburyport
Turnpike in Rowley, MA. The developer is providing buyers
with the choice of three different floor plans, each with
two bedrooms, a two-car garage and approximately 2,300 SF
of living space. Total development cost is estimated at
$10,000,000.
David Ross, a Managing Director, arranged
the non-recourse mezzanine loan to allow the sponsor to
develop the project with minimal sponsor equity in the transaction.
The loan financed what is traditionally the equity component
of project capitalization, but was structured as mezzanine
debt to allow the sponsor to reap the benefits of any project
upside. The mezzanine loan had no pre-sale requirements.
For additional information on this transaction,
please contact:
David Ross
Managing Director
Email: dross@tremontcapital.com
Phone: 617.867.0700 x773
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