2005 Transactions
Tremont Structures $9,000,000
Bridge Loan for Hotel to Condo Conversion
David
Ross, a Managing Director in Tremont Realty Capital's Boston
office structured a $9,000,000 bridge loan for South Beach
Resorts, LLC to acquire and convert The Boulevard Hotel
into hotel condominiums. The buyer is an experienced hotel
and resort developer/operator who recognized the value of
the hotel's location and potential ambience. The bridge
loan represented 86% of the total cost of acquisition and
renovation, including soft costs, and was structured as
an interest-only floating rate loan that was priced over
Libor.
The Boulevard Hotel is a 43-unit hotel and
restaurant that is located on Ocean Drive directly in the
heart of the real South Beach in Miami, FL. According to
Ross, "The location made this deal extremely viable
in our eyes. Everyone that has been to South Beach has walked
under the restaurant's awnings at some point during their
stay." While a hotel/condo conversion itself is by
definition speculative, Ross was able to convince one of
Tremont's close capital relationships of the strength of
the transaction. The lender was able to very quickly recognize
and determine the real estate play intrinsic in this location,
provide a term sheet, and close on the transaction all in
the short period of time dictated by the purchase agreement.
For additional information on this transaction,
please contact:
David Ross
Managing Director
Email: dross@tremontcapital.com
Phone: 617.867.0700 x773
