2006 Transactions
Tremont Arranges $43,250,000 MHC Acquisition
Financing
The
Chicago office of Tremont Realty Capital arranged acquisition
financing for three Florida manufactured housing communities located in Pinellas
and Pasco counties. Two of the communities; Pointe West
and Four Seasons are located in Largo and the third community,
Club Wildwood, is located in Hudson. All three properties
are age restricted communities, fully leased and of institutional
quality. The two Largo properties were converted into resident-owned
communities while Club Wildwood will remain a land lease
community owned by the shareholders of the Largo communities.
Tom Lorenzini, a Managing Director with Tremont,
arranged the financing, which included separate mortgages
on each property. Four Seasons was financed with a $13,500,000,
5- year interest only loan as was Club Wildwood, which was
a $17,000,000 loan. Pointe West carries a 10-year, $12,750,000
interest only loan for the first two years then amortizing.
Overall the properties were leveraged to approximately 77%
loan-to-purchase price.
According to Lorenzini, "Tremont
and its correspondent lender were able to structure around
some very unique characteristics. The properties had to
be acquired simultaneously as a group. Under Florida law
the homeowners associations had the right to match a bona
fide offer from a third party buyer. The residents were
given 45 days to agree to match the terms of the third party
contract. However, only two homeowner associations were
willing to purchase their respective communities. As a result
Club Wildwood had to be acquired by a newly created entity
made up of the non-profit corporations, which bought Pointe
West and Four Seasons." In addition, Lorenzini said
"We were able to satisfy the unique needs of a resident-owned
community. The loan structures on Pointe West and Four Seasons
allow for principal reduction without penalty as additional
homeowners buy shares in the cooperative and make the transition
from renters to shareholders. We see a continuing trend
in the conversion of adult manufactured housing communities
to resident-owned communities. Tremont is uniquely positioned
to provide the requested capital for such transactions given
our extensive history in the business."
For additional information on this transaction,
please contact:
Thomas Lorenzini
Managing Director
Email: tlorenzini@tremontcapital.com
Phone: 312.236.0960
