2005 Transactions

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Tremont Advises on $22,000,000 Condo Conversion

The Boston office of Tremont Realty Capital structured the capitalization for the acquisition and conversion of the Charles Daniels apartments to condominiums. The property is a 104-unit complex located in Malden, MA. Amenities include a fitness center, pool and on-site business center.

Dennis Walsh, a Senior Director with Tremont, advised the sponsor on the $22,000,000 senior/mezzanine capital raise. The investment included a $19,500,000 senior loan funded through a local bank and a $3,500,000 mezzanine loan funded by a private investment firm. The combined capital provided for approximately 98% of the acquisition of the asset plus associated costs to convert to condominiums. The property was 95% occupied at the time of closing. According to Walsh, "the challenges in this transaction were that it was high leverage and subject to significant time constraints. Tremont's experience in conversion financing, as well as, knowledge of the local market, enabled both capital sources to become quickly comfortable with the deal. The conversion project reflected middle market housing prices, a manageable absorption, and strong sponsorship."

For additional information on this transaction, please contact:

Dennis Walsh
Senior Director
Email: dwalsh@tremontcapital.com
Phone: 617.867.0700 x782