Tremont Realty Capital Structures $3M Acquisition Financing
- Mar 10, 2017
Hueytown, Ala.—The Chicago office of Tremont Realty Capital recently announced it structured financing for the acquisition of three properties in Hueytown, Ala., through an affiliate of Nodel Parks LLC. The properties include the 32-unit Notting Hill Apartments, the 174-site Saddleridge Manufactured Housing Community and All Seasons Storage, an approximately 12,000-square-foot self-storage facility. The three properties sold for a total price of $4 million.
Tremont Realty Capital recommended that Nodel Parks subdivide the original mixed-use property into more financeable single-purpose assets and then arranged for the simultaneous closing of two separate loans totaling a combined $3 million. Notting Hill was financed through Freddie Mac, at approximately 80 percent of the allocated purchase at 4 percent for 10 years on a non-recourse basis, while Saddleridge and All Seasons were financed at 70 percent for five years at approximately 5 percent.
“For Nodel Parks, Tremont arranged for two separate loans in an effort to provide the most efficient capital stack for the multi-use property. The apartment complex was financed with low cost GSE debt, while the manufactured housing community and self-storage facility required a more flexible portfolio lender,” said Thomas Lorenzini, senior director of capital markets for Tremont Realty Capital, in a prepared statement.
Tremont Realty Capital is a division of Massachusetts-based RMR Group Inc. as of August 2016.
Image courtesy of Tremont Realty Capital