2005 Transactions
Tremont Structures and
Funds $71,000,000 Land Loan Financing
The
Chicago office of Tremont Realty Capital structured acquisition
financing for Terra Cotta, a 1,077-acre, mixed-use land
entitlement project located in Prairie Grove, IL adjacent
to Crystal Lake. This northern Chicago suburban location
is entitled for the construction of town homes, single family
homes and retail. This development will add 1,100 new residential
properties and will increase the village population by 3,900
from its current population of 1,000.
Tony Kolomayets, a Senior Director with Tremont, arranged
the $55,612,000, 12-month senior land loan and the Boulder
Tremont Fund provided $16MM of mezzanine financing for most
of the balance of the land cost for a local Chicago developer.
The non-recourse loan was priced over 30- Day LIBOR. Terra
Cotta is a major infill 1,000 acre suburban Chicago retail
and single family land project. Until recently, numerous
developers attempted to entitle this land and were unsuccessful.
The large parcel was finally entitled this past fall, but
had a very short time fuse to be taken down by the borrower.
Tremont arranged the senior debt, and provided preferred
equity at a very high loan-to-cost leverage level due to
the compelling nature of the deal.
According to Kolomayets, "The key to
the transaction was Tremont's ability to move quickly in
not only arranging the total capitalization of the project,
but offering the flexibility of its Boulder Tremont Fund,
which had to change its structure and funding amount several
times before actual funding. Part of this process was Tremont's
ability to recognize the project's loan-to-cost versus its
loan-to-value."
For additional information on this transaction,
please contact:
Tony Kolomayets
Senior Director
Email: tkolomayets@tremontcapital.com
Phone: 312.236.0970
