2005 Transactions

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Tremont Structures $34,000,000 Industrial Refinance

The Boston office of Tremont Realty Capital arranged a $34,000,000, 5-year, fixed rate loan for the refinance of 19 industrial properties located in Texas, New Mexico, and Florida. The sponsor, Santa Teresa Realty Trust, used the current low interest rate environment to lock in an attractive fixed rate loan to pay off the floating rate debt.

David Ross, Managing Director, and Executive Director Richard Gallitto, worked with Santa Teresa Realty Trust to arrange the 80% LTV refinance. Some of the challenges overcome in this transaction included the sponsor simultaneously selling four properties in the portfolio and trying to satisfy the timing and capital allocation requirements of the existing lender, the new lender, as well as equity partners. All this occurred while the Borrower was managing a very dynamic rent roll and leasing environment to maximize and meet lender coverage requirements. According to Ross "the new lender was very attracted to the deal due to the inherent diversification in a multi-tenant industrial portfolio that spans three states." The creative deal structure Tremont arranged, not only satisfied the sponsor, but also provided the flexibility that the sponsor's preferred equity partner required to close the new financing transaction (Tremont Realty Capital had previously arranged the preferred equity investment).

For additional information on this transaction, please contact:

David Ross
Managing Director
Email: dross@tremontcapital.com
Phone: 617.867.0700 x773

Richard Gallitto
Executive Director
Email: rgallitto@tremontcapital.com
Phone: 617.867.0700 x772