2006 Transactions
Tremont Structures $43,000,000
Permanent Financing for Florida Manufactured Housing Community
The
Chicago office of Tremont Realty Capital arranged the acquisition
financing of Ranchero Village, a manufactured housing community
in Largo, Florida. The acquisition by the Ranchero Village
Home Owners Associations represents one of the largest communities
in Florida to be converted from a land-leased community
to a co-op. The institutional quality property consists
of 946 homesites and has maintained a 99.9% occupancy level.
Amenities at this age restricted community include three
clubhouses, three swimming pools, three lakes, a fishing
pier, tennis courts, laundry facilities, a fitness center,
a putting green, shuffleboard courts, horseshoe pits, a
billiard hall, computer room and a golf cage. Built in phases
in 1974 and 1984, the property encompasses 127 acres in
Pinellas County. The homeowners association was assisted
in the acquisition and conversion to a cooperative by Community
Services Group. An estimated 45% of the residents became
shareholders with the remainder choosing to remain as renters
in the community.
Thomas Lorenzini, a Managing Director with
Tremont, arranged the 10-year, $43,000,000, non-recourse
loan, which provided for approximately 70% of the value
and was funded through one of Tremont's correspondent lending
relationships. Amortized over 30 years with an initial interest
only period the mortgage carries a very attractive rate
in the mid-5% range. According to Lorenzini, "We were
able to satisfy the unique needs of a resident owned community.
The loan structure will allow for principal reduction without
penalty as additional homeowners buy shares in the cooperative
and make the transition from renters to shareholders. The
seller was extremely concerned about timing and we met the
challenge by closing in 45 days from the date of application.
We continue to see a 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
