2004 Transactions

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Tremont Structures $4,000,000 Acquisition Mezzanine Loan

The Chicago office of Tremont Realty Capital structured mezzanine financing for the acquisition of Ventana Hills Apartments. The collateral is a 470-unit, luxury multi-family asset in the Pittsburgh, Pennsylvania area.

A Senior Director with Tremont, arranged the 3-year, non-recourse loan, which was funded through a national mezzanine debt lender and provided about 90% financing. The property was 80% occupied at the time of closing.

The newly completed property included amenities such as controlled access entrance, heated swimming pool, clubhouse with fitness center and a business center. According to Tremont, "Because this property is new and the finest asset in the market, we faced several underwriting challenges: lack of occupancy history, no new apartments in the market to serve as comparable properties, and numerous rent concessions. These factors posed a challenge in determining the true stabilized value, which we were ultimately able to resolve for our client."

For additional information on this transaction, please contact:

Thomas Lorenzini
Managing Director
Email: tlorenzini@tremontcapital.com
Phone: 312.236.0960