2005 Transactions
Tremont Provides $2,000,000
Mezzanine Loan for Florida Apartments
The
New York office of Tremont Realty Capital arranged financing
for the acquisition of Hawthorne Place, a 228-unit, Class
A apartment complex located in Brandon, FL.
John Raggio, a Managing Director with Tremont,
arranged the $2,000,000 mezzanine loan, which was funded
through the Tremont-GRE Mezzanine Loan Program, which capped
a total of $16,800,000 in debt. The 10-year, non-recourse
loan provided for roughly an 83% loan-to-value with a competitive
interest rate. The property was 97% occupied at the time
of closing. Amenities include: a fitness center, a swimming
pool and spa, a sun deck and veranda, detached garages,
a business center, a picnic/playground area and valet dry
cleaning services. According to Raggio, "The operating
expense ratio was in excess of 55%. Similar properties in
the market were operating at considerably lower expenses.
The sponsor had other properties in the market and presented
a concise business plan to reduce expenses. In recognition
of that, Tremont was able to structure the loan with an
accrual feature and interest only for the first 24 months."
For additional information on this transaction,
please contact:
John Raggio
Managing Director
Email: jraggio@tremontcapital.com
Phone: 212.265.6622
