Tremont Realty Capital: Bridge Transactions

Bridge Transactions

Tremont Structures $3,400,000 Financing for Texas Multifamily

The Hartford office of Tremont Realty Capital arranged financing for the refinance of Summit Apartments, a 149-unit apartment complex located in Wichita Falls, TX.

Stephen Henderson, a Senior Director with Tremont, arranged the $3,400,000 bridge loan, which was funded through a regional bank. The 2-year loan had a prime based interest rate. The property was 99% occupied at the time of closing. According to Henderson, “The loan provided the sponsor with a short term answer to fit their needs. The proceeds enabled the sponsor to buy out a partner and provided funds for renovating a neighboring property. Even in a challenging lending environment, the sponsor and lender were able to work together and get the deal closed.”

For additional information on this transaction, please contact:

Stephen Henderson
Senior Director
Email: shenderson@tremontcapital.com
Phone: 860.548.9289

Tremont Structures $3,500,000 Financing for Illinois Land

The Chicago office of Tremont Realty Capital arranged financing for the refinance of Lindenhurst Village Green, a 138-acre land development deal, located in Lindenhurst, Illinois.

A Senior Director with Tremont, arranged the $3,500,000 loan which was funded through Hyde Park Bank. The 12-month, recourse loan provided for roughly 65% loan-to-value with a 9.5% interest rate. According to Tremont, “In spite of being in a difficult environment for land loans, this project was extremely attractive, mainly due to the neighboring retail development, which included major national retail “big box” tenants. The retail development next door is a natural magnet for neighboring residential development.

For additional information on this transaction, please contact:

Thomas Lorenzini
Managing Director
Email: tlorenzini@tremontcapital.com
Phone: 312.236.0960

Tremont Funds $56,797,661 Bridge Loan for Outlet Centers

Tremont Realty Capital provided first mortgage financing for the acquisition of 310,813 square foot Lodi Station outlet center in Lodi, Ohio and the refinance of 323,507 square foot Lakeland Station outlet center in Lakeland, Tennessee. The loans closed August 7, 2007.

John Bauer, a Senior Director with Tremont, originated the $56,797,661 senior bridge loan, which was funded through one of Tremont’s proprietary funds. The 36-month loan term provided for leverage of 90% loan-to-cost, and the centers were 78% and 74% leased, respectively. The new owner will rehabilitate the exterior to bring it up to modern standards and re-theme the centers. The bridge loans were non-recourse with an interest rate based on LIBOR. The major tenants in the centers include Gap, Eddie Bauer, Liz Claiborne, Polo, Nautica and Bose. According to Bauer, “The Borrower was able to use imputed equity in the center that it owned already to increase the leverage and reduce cash outlay. This structure facilitated the financing of both assets with minimal costs.”

For additional information on this transaction, please contact:

John Bauer
Senior Director
Email: jbauer@tremontcapital.com
Phone: 949.219.0400

Tremont Closes $25,000,000 Florida Retail Loan

The Boston office of Tremont Realty Capital originated and closed a $25,000,000 loan to assist with the acquisition and lease up of Delray Square II, a 151,000 square foot retail plaza located in Delray Beach, FL.

David Ross, a Managing Director with Tremont, originated the 3-year, limited-recourse loan provided for roughly 90% of the acquisition and renovation costs of the project at a competitive Libor based interest rate. The property was 75% occupied at the time of closing. Major tenants include Big Lots and the Social Security Administration. According to Ross, “Tremont was able to structure and deliver a proprietary Tremont loan product that provided very high leverage, a competitive interest rate and funds to reposition the property based on the sponsor’s business plan, project team and knowledge of the Delray Beach market. The property is located in an “A” location at the intersection of two major thoroughfares in a densely populated area.”

For additional information on this transaction, please contact:

David Ross
Managing Director
Email: dross@tremontcapital.com
Phone: 617.867.0700 x773

Tremont Structures $8,100,000 Financing for Virginia Office Building

The Boston office of Tremont Realty Capital arranged financing for the refinance of Lafayette One, a 49,000 square foot office property located in Chantilly, VA.

David Ross, a Managing Director with Tremont, arranged the $8,100,000 loan. The 2-year, non-recourse loan provided for roughly 80% loan-to-value with a floating interest rate of Libor plus 225. The property was 100% occupied at the time of closing (with a major tenant vacating in 6 months). Property tenants include Washington Homes and RE/Max. According to Ross, “Tremont was able to structure a loan that provided a competitive interest rate, reasonable leverage and safeguards in the face of a dynamic rent roll and provided the Borrower with the funding and leasing reserves they were seeking."

For additional information on this transaction, please contact:

David Ross
Managing Director
Email: dross@tremontcapital.com
Phone: 617.867.0700 x773

Tremont Provides $43,000,000 Financing for Church Street Station in Orlando

Tremont Realty Capital provided financing for the acquisition of Church Street Station, a 300,000 sf mixed-use retail project located in Orlando, FL. The property was 25% leased at the time of closing. Major tenants include Cheyenne Saloon, Ceviche’s, and the Improv of Orlando.

Dennis Walsh, a Senior Director, with Tremont, arranged the $43,000,000 loan, which was funded through a Tremont sponsored fund. The 2-year, non-recourse bridge loan provided for roughly 90% loan-to-cost. The project includes excess land for the development of a 300-room hotel. A new sports arena for the Orlando Magic and a new performing arts center are scheduled for development in immediate area. The borrower acquired this property at foreclosure auction and Tremont was able to underwrite the transfer and close the loan within the tight time frame instructed by the court. According to Walsh, “Our borrower had the vision to see the long term potential for this asset which was under-managed by its prior owner. We were time constrained and challenged as far as information flow due to the asset being sold out of bankruptcy. Tremont was able to overcome these hurdles and completed the transaction within just 45 days.”

For additional information on this transaction, please contact:

Dennis Walsh
Senior Director
Email: dwalsh@tremontcapital.com
Phone: 617.867.0700 x782

Tremont Structures $12,700,000 Bridge Financing for Revere Beach Condos

The Boston office of Tremont Realty Capital arranged financing for the acquisition of the remaining land parcels of The Ocean Club, a 242-unit proposed condominium project located on Revere Beach in Massachusetts.

Managing Director David Ross and Senior Director Dennis Walsh of Tremont arranged the $12,700,000 loan, which was funded by a national hedge fund. The short-term bridge loan provided funds to allow the developer to repay some higher cost existing debt and acquire the remaining land parcels critical to The Ocean Club project. According to Ross and Walsh, “The bridge loan allows the developer to continue his marketing efforts, finalize his construction contracts, and arrange the vertical development financing.” The Ocean Club is one of a number of improvements to Revere Beach that include a new boardwalk, other residential projects, and a large transit oriented mixed-use development that are all contributing to the renaissance of Revere Beach, the oldest public beach in the United States.

For additional information on this transaction, please contact:

David Ross
Managing Director
Email: dross@tremontcapital.com
Phone: 617.867.0700 x773

Dennis Walsh
Senior Director
Email: dwalsh@tremontcapital.com
Phone: 617.867.0700 x782

Tremont Provides $12,154,000 Financing for Massachusetts Office Building

The Boston office of Tremont Realty Capital provided financing for the acquisition of 201 Burlington Road, a 3-story, 129,324 square foot office building located in Bedford, Massachusetts.

Tremont made the $12,154,000 first mortgage loan, which was funded through a Tremont sponsored fund. The 3-year, non-recourse loan provided for roughly 90% loan-to-value. The property was 45% occupied at the time of closing. The major tenant is Reveal Imaging Technologies, an airport security screening technology company. According to Dan Mee, Executive Director, “Tremont saw this opportunity through J.M. Feeney & Associates, a prominent regional mortgage broker. Their client sought a high leverage loan with quick turnaround due to the acquisition. We were pleased that Tremont was able to accommodate everyone’s needs.”

For additional information on this transaction, please contact:

Daniel Mee
Executive Director
Email: dmee@tremontcapital.com
Phone: 617.867.0700 x777

Tremont Funds $30,000,000 Retail Loan

Tremont Realty Capital provided a $30,000,000 acquisition and repositioning loan funded by a Tremont sponsored loan program. The initial funding of $17,200,000 was used to assist the borrower, Biltmore Eight, LLC, with the acquisition of the Biltmore Square Mall in Asheville, NC. Subsequent loan disbursements will provide for tenant improvement dollars, leasing commissions and other hard and soft costs. The Tremont bridge loan is providing approximately 90% of total estimated costs over its 3-year term.

The loan was originated by David Ross, a Managing Director in Tremont’s Boston office. The Biltmore Square Mall is located in Asheville, NC and is 493,000 sf in total (333,000 sf net of anchor-owned space). The mall is anchored by Dillards and Belks, and the Sponsors are bringing in regional value retail powerhouse Steve & Barry’s as the third anchor. Ross noted, “The Biltmore Square Mall is very well located in a high traffic area with good demographics. Sponsorship is comprised of experienced local and national retail and real estate professionals. The Sponsor has already added value by signing-up Steve & Barry’s and will continue their business plan to focus on leasing up in-line space and converting month-to-month tenants.”

For additional information on this transaction, please contact:

David Ross
Managing Director
Email:dross@tremontcapital.com
Phone: 617.867.0700 x773

Tremont Structures $10,200,000 Financing for Redevelopment

The Chicago office of Tremont Realty Capital arranged pre-development financing for 2100 S. Indiana, located in Chicago, IL. The borrower plans to convert an existing office building on the site into lofts and will build a condo tower with 230 units on the land adjacent to the office/loft building.

Michael Hart arranged the $10,200,000, 24-month bridge loan which provided for 80% loan-to-acquisition cost, as well as, predevelopment funds. According to Tremont, "The Borrower was able to successfully time the zoning process to be in place at closing which enable him to recoup his predevelopment costs. Tremont's close relationship management with the seller and the lender on behalf of the borrower was instrumental in establishing a smooth execution".

For additional information on this transaction, please contact:

Michael Hart
Senior Director
Email: mhart@tremontcapital.com
Phone: 312.236.1162

Tremont Arranges $12,500,000 Financing for Retail Acquisition

David Ross, a Managing Director in Tremont's Boston office, arranged a $12,500,000 senior mortgage to finance the acquisition of the Memorial Mall in Sheboygan, WI. The mall is anchored by Sears, Bed Bath & Beyond, Kohl's, and Hobby Lobby. The mall encompasses approximately 370,000 SF of retail space, including Sears, which is tenant-owned. The property was about 80% occupied at closing. The sponsor's business plan is to aggressively market and lease-up the vacant space, with a focus on first attracting a mini-anchor, a task made easier given the recent addition of the Bed Bath & Beyond anchor. Ross noted, "Because we were working with a sophisticated sponsor and management team with a sound business plan, we were able to procure some very competitive acquisition financing. The asset itself is very attractive and well positioned in the Sheboygan market and should realize some upside in the very near future. The senior loan was non-recourse, interest-only and priced at Libor + 175."

For additional information on this transaction, please contact:

David Ross
Managing Director
Email: dross@tremontcapital.com
Phone: 617.867.0700 x773

Tremont Funds $4,200,000 Loan for Florida Biopharmaceutical Park

The Boston office of Tremont Realty Capital provided pre-development leasehold financing for Poinciana Biopharmaceutical Park, in the Liberty City area of Miami, Florida. When the project is completed it will consist of approximately 2.0 million square feet broken out as follows: 743,000 square feet of office/academic space, 262,000 square feet of mixed-use (residential & retail space) and two parking structures comprising 961,000 square feet and contain a total of 2,236 parking spaces. The project is a joint venture effort between the Sponsor and Miami-Dade County to revitalize a Federal Empowerment Zone through the development of a biopharmaceutical park in this area of South Florida.

The $4,200,000 loan was funded through a Tremont sponsored loan program. The 12-month, non-recourse loan provided the developer the capital required to move the project through the design and pre-construction stage of the project. The first phase of vertical development is expected to commence before year end.

For additional information on this transaction, please contact:

Richard Gallitto
Executive Director
Email: rgallitto@tremontcapital.com
Phone: 617.867.0700 x772

Tremont Funds $2,950,000 for Massachusetts Inn

The Boston office of Tremont Realty Capital provided $2,950,000 first mortgage acquisition financing for the Inn at Scituate Harbor, a 29-room, 13,500 square foot hotel situated on 0.56 acres of land in Scituate, a mid-sized affluent South Shore community located 26 miles south of Boston, Massachusetts.

The loan was funded through a Tremont sponsored loan program. The 12-month, non-recourse loan provided for a 90% loan-to-cost. Richard Gallitto, Executive Director of Tremont, was able to commit to funding the project within an aggressive time frame to allow the buyer to honor their purchase contract.

For additional information on this transaction, please contact:

Richard Gallitto
Executive Director
Email: rgallitto@tremontcapital.com
Phone: 617.867.0700 x772

Tremont Structures $14,800,000 Financing for Connecticut Shopping Center

The Hartford office of Tremont Realty Capital arranged financing for the refinance of The Elm Plaza Shopping Center, a 169,000 square foot Kohl’s anchored shopping center located in Enfield, CT.

Stephen Henderson, a Senior Director with Tremont, arranged the $14,800,000 loan, which was funded through a regional bank. The $14,800,000, non-recourse loan provided for roughly 75% loan-to-value with a 95 basis point spread over the 10-Year U.S. Treasury rate. The subject property was undergoing a repositioning, with the Sponsor’s build-out of a new Best Buy store adjacent to the existing Kohl’s. According to Stephen Henderson, “Tremont was able to structure a fixed rate loan with an earn-out provision that allowed the Borrower to earn additional proceeds once Best Buy was in occupancy and paying rent, while locking in the interest rate on those additional proceeds prior to funding.”

For additional information on this transaction, please contact:

Stephen Henderson
Senior Director
Email: shenderson@tremontcapital.com
Phone: 860.548.9289

Tremont Structures $13,800,000 Acquisition Financing for Two Loft Office Buildings

The Chicago office of Tremont Realty Capital arranged the acquisition financing of 833 W. Jackson & 322 S. Green Street. Both are “A” quality loft buildings located in the West Loop/River West office market, which border the West loop and “Greek Town” on the east, and the University of Illinois-Circle campus to the south.

Tony Kolomayets, a Senior Director with Tremont, arranged the 5-year, non-recourse loan with a 30-year amortization, which provided for approximately 80% of the value. The property was 85% occupied at the time of closing. According to Kolomayets, “The project had a unique position within the downtown office market where the rents were substantially below the Class-A office buildings in the West Loop and yet this property offered brand new space at affordable rental rates. The property is well located within blocks of the commuter train stations that service the city and the suburbs, as well as, many restaurants that line the sidewalks in Greek Town and along Randolph Street.”

For additional information on this transaction, please contact:

Thomas Lorenzini
Managing Director
Email: tlorenzini@tremontcapital.com
Phone: 312.236.0960

Tremont Arranges Financing for $102,000,000 Mall Acquisition

Tremont Realty Capital advised IPofA West Oaks LP in structuring the capitalization of the $102,000,000 mall acquisition. The proceeds funded the purchase of the West Oaks Shopping Mall, a 498,829 square foot, enclosed, institutional grade, regional shopping center in Houston, Texas. It is 90% leased and anchored by Sears, Linens ‘n Things, The Alamo Drafthouse, Steve and Barry’s, as well as, tenant-owned Dillard’s and Foleys.

David Ross, a Managing Director in Tremont’s Boston office, arranged a $98 million financing package that included $80,000,000 of senior debt and $18,000,000 of preferred equity. Ross noted, “Working with a sophisticated borrower, along with experienced and knowledgeable capital providers, allowed us to work around some of the unique challenges associated with financing an asset of this size and complexity in a very short time frame. In addition, the asset itself is very attractive and well positioned in the Houston market and should realize some upside in the very near future. ”

For additional information on this transaction, please contact:

David Ross
Managing Director
Email: dross@tremontcapital.com
Phone: 617.867.0700 x773

Tremont Structures and Funds $71,000,000 Land Loan Financing

Tremont Funds $19,200,000 Arizona Condo Conversion Loan

Tremont Structures $9,000,000 Bridge Loan for Hotel to Condo Conversion

Tremont Structures $13,750,000 Bridge Financing for Hotel Portfolio

Tremont Provides $3,100,000 Bridge Loan on Vacant Building

Tremont Provides $35,000,000 Land Development Financing

Tremont Structures $20,100,000 Bridge Financing for Texas Shopping Center

Tremont Arranges $12,900,000 of Debt and Equity for Greenway Place Condo Conversion

Tremont Structures $10,000,000 Financing for Self Storage

Tremont Arranges $10,265,000 Financing for Acquisition of RV Resort