2005 Transactions

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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.

A Managing Director with Tremont arranged the $2,000,000 mezzanine loan, which was funded through a Tremont sponsored 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 Tremont, "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:

Richard Gallitto
Executive Director
Email: rgallitto@tremontcapital.com
Phone: 212.265.6622