2006 Transactions
Tremont Structures $5,000,000
Financing for Illinois MHC
The
Chicago office of Tremont Realty Capital arranged the acquisition
financing of Modern Estates, a manufactured housing community
located in Blue Island, IL. At the time of acquisition,
the 210-site community was 77% occupied, in a market boasting
95+% occupancy levels. The buyer, an experienced mobile
home park operator, plans to rapidly bring the occupancy
up to market. The buyer has had the property under option
since 2001 while waiting for the underlying financing to
become prepayable. In lieu of an earnout the borrower posted
a $1MM letter of credit which will be released upon reaching
a pre-determined debt coverage ratio.
Thomas Lorenzini, Managing Director
with Tremont, arranged the 10-year fixed rate, $5,000,000
non-recourse loan, which provided for approximately 65%
of the value. According to Tom Lorenzini, "we were
able to structure a loan that provided the requested leverage
even with the below market occupancy levels."
For additional information on this transaction,
please contact:
Thomas Lorenzini
Managing Director
Email: tlorenzini@tremontcapital.com
Phone: 312.236.0960
