2004 Transactions
Tremont Provides $2,020,000
Mezzanine Loan for Georgia Apartments
The
Chicago office of Tremont Realty Capital structured financing
for the acquisition of Villages on the River Apartments,
a 324-unit multifamily property in Jonesboro, GA.
Tom Lorenzini, a Managing Director with Tremont,
arranged the $2,020,000 mezzanine loan, which was funded
through the Tremont-GRE Mezzanine Loan Program. The 5-year,
non-recourse loan provided for a total of 93% of the purchase
price with a 12% interest rate. The property was 92% occupied
at the time of closing with a lower economic occupancy.
According to Tom Lorenzini, "We were able to quickly
understand the market and concessions environment, which
allowed us to get comfortable with the proceeds on a loan-to-value
basis. Additionally, Tremont worked closely with the senior
lender which gave us the ability to accommodate the borrower's
and seller's timeline of closing the loan within three weeks
of application".
The Tremont-GRE Mezzanine Loan Program, managed by Tremont
Realty Advisors, expects to close approximately $150M in
mezzanine financing during the next 12 months, providing
financing for cash-flowing assets. Loans are typically in
the range of $3M to $30M for up to 90% LTV. Terms start
at two years and can be as long as 10 years; a bonus for
borrowers looking for mezzanine to match up with today's
extremely attractive long-term senior financing. The minimum
yield target is typically 12%, although the lender will
go as low as 8% on a pay rate. The lender is also willing
to go as low as 1.0 on DSC for select deals with value-ad.
For additional information on this transaction,
please contact:
Thomas Lorenzini
Managing Director
Email: tlorenzini@tremontcapital.com
Phone: 312.236.0960
