Tremont Realty Capital: Mezzanine Transactions

Mezzanine Transactions

Tremont Structures $41,000,000 Mezzanine Financing for Vail, CO Hospitality

The Boston office of Tremont Realty Capital arranged the mezzanine financing for the Four Seasons Hotel and Resort, a first five-star hotel and resort facility to be offered in Vail. The property is situated at One Vail Road and will serve as the gateway to Vail Village in Vail, Colorado.

Tremont arranged the $41,000,000 loan with a New York based fund. The mezzanine loan capped a total of approximately $230,000,000 in debt. Upon completion, the property will include a 120-room hotel and 35 condominium residences. A portion of the residences will be sold in fractional interests and included in the Four Seasons Residence Club network. The property will also include conference center facilities, spa services, and other amenities consistent with the world’s finest five-star resorts. According to Tremont, “Vail Village is already considered a world-class resort destination with first class accommodations, but this outstanding sponsorship team will be delivering a product that will be of a quality unmatched in Vail. Knowing this asset will be a huge success, our client wanted to maximize leverage. Tremont developed a short list then ultimately selected a capital partner that could execute a large mezzanine loan at optimal pricing.

For additional information on this transaction, please contact:

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

Tremont Provides $3,000,000 Office Mezzanine Loan

The Boston office of Tremont Realty Capital arranged mezzanine financing for the acquisition of 10 Fawcett Street, a 130,304 square foot, first-class office building located in Cambridge, Massachusetts.

Dennis Walsh, a Senior Director with Tremont, arranged the $3,000,000 mezzanine loan, which was funded through Tremont-GRE Funding LLC, and capped a total of $20,000,000 in debt. The 36-month, non-recourse loan provided for roughly 90% loan-to-value financing. The property was 87% occupied at the time of closing. Major tenants include Cambridge Trust Company, which occupies 21% of the space. According to Walsh, “We were able to quickly match up the borrower’s financing needs to one of the many direct loan high leverage products we manage. By assisting in the front-end of the borrower’s purchase, we were also able to execute in a timeframe that met a stringent closing date.”

For additional information on this transaction, please contact:

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

Tremont Provides $6,000,000 Pre-Development Financing

The Chicago office of Tremont Realty Capital structured financing for the acquisition and pre-development of a 12,800 sf land assemblage to be developed into a 280,000 sf condo-hotel project in Chicago, IL.

Michael Hart, a Senior Director with Tremont, arranged the mezzanine loan, which was funded through a Tremont sponsored program and provided for approximately $19,000,000 in senior and subordinate-debt. The non-recourse loan provided for roughly 80% of the pre-development budget. According to Mr. Hart, "The project was unique in that the availability of buildable land with this proximity to Michigan Avenue is virtually non-existent and the combined FAR value of the assembled parcels significantly exceeded the cost. Recognizing the value allowed Tremont the ability to provide proceeds well in excess of the acquisition cost."

For additional information on this transaction, please contact:

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

Tremont Provides $4,300,000 Mezzanine Loan on Virginia Retail

The Boston office of Tremont Realty Capital provided financing for the acquisition of Spotswood Valley Square Shopping Center, a 205,380 square foot grocery-anchored community shopping center located in Harrisonburg, Rockingham County, Virginia.

Dennis Walsh, a Senior Director with Tremont, arranged the $4,300,000 mezzanine loan, which was funded through Tremont-GRE Funding LLC, and capped a total of $14,000,000 in debt. The 6 ½ year (structured to be coterminous with the Senior Loan), non-recourse loan provided for 83% loan-to-purchase. The property was 98% occupied at the time of closing. Major tenants include Kroger Grocery, Office Depot, TJ Maxx and Fashion Bug. According to Walsh, "The challenges in closing this transaction were in securing approval from the special servicer as well as underwriting a near term lease expiration with the anchor. Our financial backing and experience with many securitized lenders facilitated the first hurdle and familiarity with the market and recognition of the significant sales volume of the anchor satisfied the latter."

For additional information on this transaction, please contact:

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

Tremont Structures $14,750,000 Condo Development Capital

The Chicago office of Tremont Realty Capital structured capital for the land acquisition and construction of 2800 W. Chicago Avenue and 2300 S. Michigan Avenue in Chicago, IL. 2800 W. Chicago Avenue will have 33 residential condos and 9 commercial units. 2300 S. Michigan which is located in Chicago’s “hot south loop” and directly west of McCormick Place Convention Center will have 99 units, seven stories tall

Mariya Khasina, Associate Director and Michael Hart, Senior Director, arranged both transactions. 2800 W. Chicago’s $10,400,000 senior loan was funded through a regional bank and a $1,200,000 mezzanine loan that was funded through the Boulder Tremont Fund. The total proceeds provided for 90% loan-to-cost. 2300 S. Michigan was capitalized with a $2,250,000 senior loan also funded through a local bank and a $900,000 mezzanine loan that was funded through the Boulder Tremont Fund. According to Ms. Khasina, “Tremont was approached by the client for these transactions to accommodate a three week closing timeframe for a sensitive acquisition. Tremont used its proprietary mezz program to credit enhance the senior and provide the mezzanine debt for the land acquisitions in a timely manner to accommodate the borrower's timing and leverage needs.”

For additional information on this transaction, please contact:

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

Tremont Closes $7,200,000 Mezzanine Loan for Arizona Development

Through its Boulder Tremont Fund, an opportunistic preferred equity and mezzanine program, the Boston office of Tremont Realty Capital made a $7.2 million loan secured by a mezzanine position in a project being developed at the Troon North Golf Club in Scottsdale, Arizona. The project’s site is 12.4 acres along holes one through nine of one of the golf courses. Upon completion, the project will be a Residence Club with each condominium unit to be sold in deeded fractional interests.

David Ross, Managing Director and Rick Gallitto, Executive Director with Tremont Realty Capital, structured the $7.2 million loan, which capped a total of $20.2 million in debt. The 12-month loan allowed the borrower to begin development and repay some seller financing. According to Tremont, “the project required a highly-customized and flexible capital solution, which Tremont delivered in a very quick time frame. The mezzanine loan was structured with an initial funding of $5.9MM and additional construction funds of $1.3MM.”

For additional information on this transaction, please contact:

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

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

Tremont Provides $4,200,000 Mezzanine Loan for an Ohio Industrial Portfolio

The Boston office of Tremont Realty Capital recently provided a $4.2 million mezzanine loan to a partnership that acquired a 2.2 million square foot industrial portfolio comprised of multiple single-tenant assets in Cincinnati and Columbus, Ohio.

Tremont arranged the mezzanine loan which provided up to 89% loan-to-value when combined with the $63 million Countrywide first mortgage. The loan proceeds were used by a sponsorship comprised of four principals who acquired the portfolio through a Tenant-In-Common ownership structure. The mezzanine loan has a ten-year term and earns a fixed interest rate. The portfolio includes ten industrial warehouse and distribution buildings each leased to single users on net leases with varying lease terms. Major tenants in the portfolio include Kellogg, the GAP, Eagle Logistics, Sears, and others. Tremont successfully underwrote the portfolio of properties and completed due diligence in a timely manner before year-end 2005. According to Tremont, “the attractive credit metrics, including stable cash flow from high quality tenants, solid real estate assets and strong sponsorship means the long-term, fixed-rate mezzanine loan offers an attractive risk-adjusted return.”

For additional information on this transaction, please contact:

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

Tremont Provides $2,000,000 Mezzanine Loan for Florida Apartments

Tremont Funds $2,300,000 Houston Apartment Mezzanine Loan

Tremont Structures $92,000,000 Financing for Boston Condominiums

Tremont Structures $22,300,000 Capitalization of 58-Unit Condo Project

Tremont Structures $11,000,000 Senior/Mezzanine Financing for Chicago Area Hotel

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

Tremont Provides $6,500,000 Mezzanine Loan for Virginia Beach Apartments

Tremont Structures $19,5000,000 Capital Stack for Condo Construction

Tremont Provides $3,940,000 Financing for Dallas Apartments

Tremont Provides $2,020,000 Mezzanine Loan for Georgia Apartments