Issue link: https://read.dmtmag.com/i/370270
SEPTEMBER 2014 25 THE JOURNAL some CMBS and Freddie Mac will allow up to 20% or more. Reputation and experience are probably the most important as- pects a borrower needs to look for in either an advisor or a lender. Tremont's compli- mentary services can assist borrowers in navigating this space and provide them with access to ideal financing solutions. Over the last 18 months, the industry has wit- nessed the CMBS markets return as a consistent and reliable financing vehicle. LTVs are back up to the 75% level, and often times higher. This is the most widely available financing for average quality MH/RV communities. Typical loan fea- tures include amortization schedules of up to 30 years (although a period of interest only is obtain- able), non-recourse, 10-year terms and little prepayment flexibility. Currently, rates are gen- erally in the low 4% range. Tremont can offer borrowers Fannie Mae and Freddie Mac financing programs through its corre- spondent relationships. It is estimated that only 10 - 20% of the communities across the US qual- ify for agency financing. Both entities are an ex- cellent financing vehicle for refinancing top quality assets over $5,000,000 at rates as low as the mid- 3's for 10-year terms, amortized over 30 years. Secondary financing is also a unique option with FNMA and allows the borrower to re-leverage the asset in the future. Tremont can provide flexible financing through the Firm's third party capital partners for commu- nities in transition or that require a short-term bridge loan. These loans are structured up to 80%-85% leverage, typically floating over an index such as LIBOR or Prime, with interest-only payments. An example would be the acquisition of a community that has demonstrable up-side through lease-up, expansion, or simply better management. Bridge loans are shorter term loans with maturities of 2 to 5 years. Once the borrower executes on the business plan, a more traditional, fixed-rate loan can be put in place. Tremont is unique in that the firm operates a dual platform of investment advisory services and investment management. Through its advisory operation, Tremont arranges debt and equity placement for borrowers nationwide. Tremont is also a SEC Registered Investment Advisor and has managed direct lending / investing vehicles com- prising of over $312 million of equity capital, rep- resenting more than $750 million in total real estate value. Being a direct lender / investor al- lows Tremont to enjoy distinct access and credi- bility with peer third party lenders/investors. Tremont has recently arranged financing for the following MH/RV transactions: • The refinance of an age restricted RV/MHC community in Mission, TX for $2,655,000. Unique to the transaction was the mix of seasonal users in addition to the portion of permanent res- idents. • The acquisition financing of a 75% leased high-quality, 340-site community located in Bat- tle Creek, MI for $7,500,000. In this transac- tion, Tremont was able to overcome the issue of almost 25% of the occupants renting their homes without the need for a master lease or a separate purchase allocation of the home values. The low 4% 10-year loan was on a non-recourse basis. • A $6,000,000 non-recourse, bridge loan for the interim financing of an 80% leased Midwest- ern community. Owner plans to lease up and re- capitalize within 3 years. For more information on how Tremont can help you, please contact Tom Lorenzini, Managing Director in Chicago, at 312-236-0960, tloren- zini@tremontcapital.com, or John Chase, Sen- ior Director in Annapolis at 410-604-1744, jchase@tremontcapital.com. You can also visit Tremont on the web at www.tremontcapital.com. No. 16 on Get It Quick Page \ 20 F inancial F ocu$