Tremont Realty Capital: CMBS Transactions

CMBS/Permanent Transactions

Tremont Structures $4,500,000 Financing for Wisconsin Manufactured Housing Community

The Chicago office of Tremont Realty Capital structured financing for the refinance of Oakwood MHC, a 215-unit manufactured housing community located in Kenosha, WI.

Tom Lorenzini, a Managing Director with Tremont, arranged the $4,500,000 loan, which was funded through one of Tremont’s correspondent relationships. The five year non-recourse loan provided for roughly 63% loan-to-value with a 5.25% interest rate. According to Lorenzini, “Given Tremont’s successful track record with manufactured housing communities, we were able to ensure a smooth and timely closing for the borrower despite the challenging capital markets.

For additional information on this transaction, please contact:

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

Tremont Structures $14,500,000 Financing for MHC

The Annapolis office of Tremont Realty Capital structured financing for the refinance of MacLeod’s MHC, a 376-unit manufactured housing community located in Riverhead, NY.

John Chase, a Senior Director with Tremont, arranged the $14,500,000 loan, which was funded through one of Tremont’s correspondent relationships. The 10 year loan provided for roughly 65% loan-to-value with a 5.95% interest rate. According to Chase, “The sponsor and Tremont’s correspondent were able to work through issues related to 346 buried heating oil tanks and still able to provide a timely funding that provided a non-recourse loan with equity recapture.”

For additional information on this transaction, please contact:

John Chase
Senior Director
Email: jchase@tremontcapital.com
Phone: 410.604.1744

Tremont Structures $4,749,500 Bedford Office Financing

The Boston office of Tremont Realty Capital arranged financing for the refinance of 54 Middlesex Turnpike, a two story, 42,500 square foot, multi-tenant office building and separate 8,068 square foot daycare center located on 6.7 acres in Bedford, MA.

David Ross, a Managing Director with Tremont, arranged the $4,749,500 loan, which was funded through a local bank. The 20 year loan provided for roughly 70% loan-to-value with a 5.75% interest rate. The property is located near Routes 95 and 3. According to Ross, “The owners had just completed the addition of a free-standing, 8,000 square foot daycare center at the property. They had financed the new improvements out of pocket and were looking for a new permanent loan to refinance the existing loan, in order to recoup some of their recent investment into the daycare center. While the daycare center was a start-up, the location was terrific and the office history and rent roll were compelling.”

For additional information on this transaction, please contact:

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

Tremont Structures $2,715,000 Financing for Wyoming MHC

The Chicago office of Tremont Realty Capital arranged financing for the acquisition of Antelope RV & Mobile Home Park, a 120-site MHC located in Gillette, Wyoming.

Thomas Lorenzini, a Managing Director with Tremont, arranged the $2,715,000 first mortgage loan, which was funded through a local Chicago bank. The 36-month, recourse loan provided for roughly 75% loan-to-value with a 6% interest rate. The property was 99% occupied at the time of closing. Amenities include a children’s playground. According to Lorenzini, “Tremont was able to arrange the financing and facilitate a quick close for the client despite the challenging capital markets.”

For additional information on this transaction, please contact:

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

Tremont Structures $5,250,000 Financing for Illinois MHC

The Chicago office of Tremont Realty Capital arranged financing for the refinance of Valley View Estates, a 234-site manufactured housing community located in Shiloh, Illinois.

Thomas Lorenzini, a Managing Director with Tremont, arranged the $5,250,000 loan, which was funded through a Fannie Mae DUS lender. The 9-year, non-recourse loan provided for roughly an 80% loan-to-value with a 5.86% interest rate. The property was 93% occupied at the time of closing. Amenities include a playground and a basketball court. According to Lorenzini, “Given Tremont’s successful track record with manufactured housing communities, we were able to ensure a smooth and timely closing for the borrower during this turbulent market.”

For additional information on this transaction, please contact:

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

Tremont Structures $3,000,000 Financing for Connecticut Bank Portfolio

The Hartford office of Tremont Realty Capital arranged financing for the refinance of a portfolio of bank buildings located in various locations throughout Connecticut.

Stephen Henderson, a Senior Director with Tremont, arranged the $3,000,000 loan, which was funded through a regional bank. The 10-year, non-recourse loan provided for roughly 75% loan-to-value, with a competitive interest rate. The properties were 100% occupied at the time of closing. Major tenants included local and national banks. According to Henderson, “The borrower was looking for flexibility within the transaction and we were able to obtain the provisions they needed with this loan structure.” The borrower has used Tremont many times over the years due to our ability to provide multiple options on each occasion.

For additional information on this transaction, please contact:

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

Tremont Structures $18,100,000 Financing for Kentucky Hotel Portfolio

The Chicago office of Tremont Realty Capital arranged refinancing of a hotel portfolio in Lexington, Kentucky, which included a Baymont Inn, a Holiday Inn, and a Best Western totaling just over 500 rooms.

A Senior Director with Tremont arranged the $18,100,000 loan through a national bank. The recourse loan provided for roughly 75% loan-to-value with an 8% interest rate. According to Tremont, “There were three separate hotels/flags located next to each other, all doing well. There were no unique nuances in the transaction, except that one flag would do better one year, than the others, and then that would flip flop the following year. This had to be taken into consideration from an underwriting perspective, since the borrower wanted to maximize the loan proceeds.

For additional information on this transaction, please contact:

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

Tremont Structures $12,000,000 Financing for Illinois Condominiums

The Chicago office of Tremont Realty Capital arranged financing for the refinance of Pebblewood Court Condominiums, a 220-unit, 475,689 square foot complex located in Hanover Park, Illinois.

Mike Hart, a Senior Director with Tremont, arranged the 24-month, $12,000,000 first mortgage loan, which provided 72% loan-to-cost. The property occupies 10.5 acres and consists of 11 buildings that were built in 1973. According to Mike Hart, “The loan Tremont structured enables the sponsor to convert the remaining 150-units in the inventory to condominium quality.”

For additional information on this transaction, please contact:

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

Tremont Structures $11,440,000 Financing for North Carolina Retail

The Hartford and Boston offices of Tremont Realty Capital arranged financing for the acquisition of Battleground Plaza, a 146,000 square foot shopping center located in Greensboro, NC.

Stephen Henderson, a Senior Director with David Ross, a Managing Director at Tremont, arranged the $11,400,000 loan, which was funded through a national lender. The 10-year, non-recourse loan provided for roughly 80% loan-to-value. Major tenants include Big Lots, Tuesday Morning, and Gold’s Gym. According to Henderson, “The area is a great retail market and Tremont was able to provide the lender with information to get them comfortable with the deal. Tremont provided the borrower with several options including several high leverage options before settling on this deal.

For additional information on this transaction, please contact:

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

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

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

Tremont Arranges $24,000,000 Big Box Retail Financing

The Chicago office of Tremont Realty Capital arranged debt for the construction of a Kohl’s and a Bed Bath and Beyond. The site known as, the Almarida Shopping Center is located in Campbell, California approximately five miles southwest of San Jose. The 149,620 square foot property is located in a very dense, infill location which went through a very difficult zoning process of nearly two years, which is typical of the Bay Area.

A Senior Director with Tremont arranged the loan, which was funded through a pension fund. This forward commitment, permanent loan with a 20-year term and a 20-year amortization period, provided for roughly 80% loan-to-stabilized value. According to Tremont, “Despite some underwriting challenges such as a 30-year ground lease, we were able accommodate the client’s proceeds needs and provide a single source of financing for both the construction and permanent loan. This enabled the borrower to lock in today’s rates. Both Kohl’s and Bed Bath and Beyond are two very strong credit tenants that will add to the economics and retail corridor of the city.”

For additional information on this transaction, please contact:

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

Tremont Structures $18,800,000 Refinance for Two Chicago Office Buildings

The Chicago office of Tremont Realty Capital arranged for the refinance of 833 W. Jackson & 322 S. Green Street. These are both high quality loft buildings located in the West Loop/River West office market. The buildings border the West loop and “Greek Town” on the east, and the University of Illinois-Circle campus to the south. The rentable area for each respective building is 62,430 sf and 89,286 sf, for a total of 151,716 sf.

Michael Hart, Senior Director with Tremont, arranged the 10-year fixed rate, $18,800,000 non-recourse loan, which provided for approximately 85% of the value that was funded by a national conduit lender. The property was 95% occupied at the time of closing. According to Tremont, “Tremont was able to arrange financing that provided an aggressively priced spread for an 85% loan-to-value deal. These buildings are very well positioned in the downtown west loop submarket which were originally purchased at a 70% occupancy level and refinanced at a 95% occupancy level.”

For additional information on this transaction, please contact:

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

Tremont Structures $2,330,000 Financing for Arizona Medical Office

The Chicago office of Tremont Realty Capital arranged acquisition financing for the Prescott Medical Suites located at 980 Willow Creek Road, Prescott, AZ. Prescott Medical is a two-story, 20,940 square foot multi-tenant medical office building that was 85% occupied at closing. The property is ideally located across the street from the Yavapai Regional Medical Center west campus, which serves as the community’s largest hospital.

Thomas Lorenzini, a Managing Director with Tremont’s Chicago office, arranged the $2,330,000, 5-year fixed rate non-recourse loan which provided 70% loan-to-value. According to Lorenzini, “Tremont was able to secure financing that met the borrower’s tight spread expectations, as well as, time frame and fixed rate request.”

For additional information on this transaction, please contact:

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

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

Tremont Arranges $4,000,000 Financing for Royal Highlander MHC

The Chicago office of Tremont Realty Capital arranged financing for the refinancing of Royal Highlander MHC, a 281-site manufactured housing community located in Peoria, IL

Tom Lorenzini, a Managing Director with Tremont, arranged the 5-year; $4,000,000 non-recourse loan which provided for less than 50% loan-to-value with a 6.29% interest rate amortized over 30 years. The property was 95% occupied at the time of closing. According to Tom Lorenzini, "Tremont was able to satisfy the borrower's requirement of a fixed rate loan with very flexible prepayment penalties. After an initial lock out period the borrower will have the ability to payoff the loan with a minimum of a 1% fee."

For additional information on this transaction, please contact:

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

Tremont Arranges $4,250,000 Fannie Mae Loan for MHC

The Chicago office of Tremont Realty Capital arranged financing for the refinancing of Oakwood MHC, a 215-site manufactured housing community located in Kenosha, WI.

Tom Lorenzini, a Managing Director with Tremont, arranged the $4,250,000 loan, which was funded through its DUS Fannie Mae correspondent. The 5-year non-recourse loan provided for roughly 50% loan-to-value with a 6.22% interest rate amortized over 30 years. The property was 98% occupied at the time of closing. According to Lorenzini, "Through Tremont's DUS correspondence relationship, we were able to structure a Fannie Mae loan which will allow for supplemental financing in the event the borrower chooses to re-leverage the property in the future. In addition, we were able to structure a very favorable declining prepayment penalty schedule to provide the borrower with maximum flexibility."

For additional information on this transaction, please contact:

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

Tremont Arranges $7,000,000 Financing for Retail Center

The Chicago office of Tremont Realty Capital arranged financing for the refinancing of Metrowest Shoppes, a 39,725 square foot neighborhood retail center located in Orlando, FL.

Tom Lorenzini, a Managing Director with Tremont, arranged the $7,000,000 bridge loan, which was funded through a local bank. The 18-month interest-only floating rate loan provided for roughly 65% loan-to-value. The property was 83.5% occupied at the time of closing. According to Tom Lorenzini, "Tremont was able to structure this transaction to meet the borrower's deadline which required us to close within 30 days."

For additional information on this transaction, please contact:

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

Tremont Structures $34,400,000 Retail Financing

David Ross, a Managing Director in Tremont's Boston office, structured $34,400,000 of acquisition capital. This included a $6,000,000 mezzanine loan and a $28,400,000 senior mortgage to assist his client with the $36,000,000 purchase of the Central Mall in Salina, KS. Tremont capped the financing with a Tremont sponsored mezzanine loan and placed the senior debt with one of its capital partners.

The Central Mall is the only mall within its Regional Trade Area in north-central Kansas, which encompasses 14 counties. The mall is anchored by Dillards, JCPenney, and Sears and boasts many national in-line tenants, as well. The mall encompasses approximately 486,000 square feet of retail space, including anchors, in-line space, outparcels and kiosks. The property was approximately 90% occupied at closing. Ross noted, "The Central Mall is a very vibrant and attractive property. Our client recognized the upside of optimizing the rent roll and tenant mix, as well as the potential of the developable outparcels."

For additional information on this transaction, please contact:

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

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

Tremont Structures $43,000,000 Financing for Florida MHC

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

Tremont Structures $4,600,000 Financing for Manufactured Housing Communities

The first property, called the Port of Call Manufactured Housing Community located is in Port Huron, MI, is improved with a 146-site mobile home park, and was built in two phases of 81 and 65 sites, respectively. One of the 146 sites is used as the community office, with the remaining 145 sites available for lease by the residents. Phase 1 was built in 1993 and Phase II was built in 1994-95. Tom Lorenzini, a Managing Director with Tremont’s Chicago office, arranged the 10-year, $3,100,000, non-recourse loan, which provided for approximately 80% of the value. The property was 87% occupied at the time of closing.

Lorenzini also arranged the refinancing for the second property, Lake Bluff Oaks Manufactured Housing Community. The property is located in Oakwood, IL, which is 120 miles south of Chicago, in Vermilion County. Built in 1974, the community has 123 home sites and covers 21 acres. The 10-year, $1,550,000 loan had a 30-year amortization, which provided for approximately 80% of the value and the property was 97% occupied at the time of closing. According to Lorenzini, “Tremont was able to structure a loan with relatively limited closing costs and was able to facilitate a quick closing. As predicted the asset continues to boast strong occupancy levels.”

For additional information on this transaction, please contact:

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

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 Steve 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 $5,000,000 Financing for Modern Estates MHC

Tremont Structures $43,000,000 Permanent Financing for Florida MHC

Tremont Arranges $2,000,000 Permanent Loan for Industrial Property

Tremont Structures $4,600,000 Permanent Financing for Michigan MHCs

Tremont Arranges $14,800,000 Permanent Financing for Connecticut Shopping Center

Tremont Structures $10,900,000 Term Loan for Alaska MHC

Tremont Arranges $2,250,000 Florida RV Resort Financing

Tremont Arranges $3,485,000 Permanent Loan for Oklahoma MHC

Tremont Structures $3,750,000 Permanent Financing for Connecticut Shopping Plaza

Tremont Structures $34,000,000 Industrial Refinance