2004 Transactions

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Tremont Provides $6,500,000 Mezz Loan for Virginia Beach Apartments

Tremont Realty Capital provided mezzanine financing for the acquisition of Emerald Point Apartments, an 863-unit apartment property located only three miles from oceanfront in Virginia Beach, Virginia. Amenities include two pools, tennis courts and a fitness center.

A Managing Director with Tremont arranged the $6,500,000 mezzanine loan, which was subordinate to a $52,000,000 senior CMBS financing that was provided by Merrill Lynch. The 10-year, non-recourse loan, was funded through a direct lending program sponsored by Tremont, which provided approximately 90% of the purchase price at a blended cost of capital of 6.08%. The property was 95% occupied at the time of closing with a lower economic occupancy. According to Tremont, "In addition to becoming very familiar with the local apartment market, we also got comfortable with the Sponsor's plan to increase revenues." GMAC acted as the mortgage broker in this transaction.

For additional information on this transaction, please contact:

Richard Gallitto
Executive Director
Email: rgallitto@tremontcapital.com
Phone: 617.867.0700 x772