2006 Transactions
Tremont Structures $3,650,000 Financing for Resident Owned MHC
The Chicago office of Tremont Realty Capital arranged financing for the acquisition of Paradise Park, an adult only, 180-unit manufactured housing community located in Largo, Florida.
Tom Lorenzini, a Managing Director with Tremont, arranged the $3,650,000 loan, which provided for 67 % of the purchase price. The 10-year, non-recourse loan was priced in the very low 6% range. The property was 100% occupied at the time of closing. The property was acquired by the Resident Homeowners Association and converted from a traditional land lease community to a resident owned co-operative. Approximately 40% of the existing residents converted to shareholders in the cooperative with the rest remaining as renters. Amenities include a swimming pool, clubhouse, laundry facilities, spa, shuffleboard courts and horseshoe pits.
According to Lorenzini, “Tremont was able to structure a very flexible loan, which allowed for an annual prepayment of a portion of the mortgage without penalty, as additional shares are sold in the co-op and residents convert from renters to shareholders. At the same time, we provided a long-term, fixed rate note at a very attractive interest rate. “
For additional information on this transaction,
please contact:
Thomas Lorenzini
Managing Director
Email: tlorenzini@tremontcapital.com
Phone: 312.236.0960
