2004 Transactions
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
