Issue link: https://read.dmtmag.com/i/720597
Tremont Realty Capital, a division of The RMR Group, is an experienced and active orig- inator in the manufactured home (MH) and RV communities finance industry. Tremont principally raises debt and equity capital for owners of commercial real estate and serves as a manager of funds invested in commercial real estate loans, in addition to providing advisory services. The firm was just recently acquired by The RMR Group (Nasdaq: RMR) an alter- native asset management company with ap- proximately $23.4 billion of real estate assets under management, as of June 30, 2016. The RMR Group is headquartered in Newton, MA with offices across the country including Tremont's offices in Newton, MA, Chicago, IL, Annapolis, MD, Hartford, CT and New- port Beach, CA. While Tremont arranges debt and equity fi- nancing for all types of commercial real estate, the MH/RV sector has been a consistent prod- uct type. Two of Tremont's founding partners, Tom Lorenzini (Chicago) and John Chase (Annapolis), have been working together for over 20 years and specialize in the financing needs of MH/RV community owners. The two have demonstrated expertise in this niche sec- tor, having arranged over $2 billion in com- pleted financings over the course of their careers. Competitive and Shifting Lending Environment Today. . . Borrowers today are experiencing a liquid and competitive lending environment. Rates continue to test new lows (i.e. in the 3% to 4.5% range). Many lenders continue to in- crease loan allocations to this sector. While there have been slowdowns in lending activity in the CMBS market and in traditional bank lending due to regulatory developments, both Fannie Mae and Freddie Mac have continued to increase loan originations. Active lenders have a growing willingness to finance commu- nities with an increasing percentage of rental homes, while at the same time accepting more family-oriented communities (as opposed to re- tiree and lifestyle communities). Lastly, in ad- dition to traditional lenders like banks, CMBS life companies, Fannie Mae and Freddie Mac, non-bank specialty finance lenders and private equity firms have entered the debt and equity markets as capital providers to the MH/RV space. . . .Growing Participation by Specialty Finance Lenders Tomorrow While CMBS spreads have been quite volatile over the past 12 months, we expect 2017 will bring more stability and predictability to the sector as the market begins to accept the new risk retention rules and real estate funda- mentals remain sound. Banks on the other hand, are expected to continue to pull back lending, with both pri- vate and public specialty finance lenders pick- ing up the slack to provide non-recourse bridge and permanent financing. These lenders have been enticed by the attractive risk-adjusted yields manufactured housing community lend- ing provides, as well as by the industry's low, long-term default rate. This Increase in Financing Choices can Lead to Some Confusion when Choosing a Lender. Borrowers face a myriad of questions before proceeding with any loan program. What is my preferred loan MANUFACTUREDHOUSINGCOMMUNITY FINANCING SPECIALISTS REPRESENTATIVETRANSACTIONS Tom Lorenzini Chicago 312-236-0960 tlorenzini@rmrgroup.com John Chase Annapolis 410-604-1744 jchase@rmrgroup.com Tremont Realty Capital is a division of The RMR Group. For more information on The RMR Group, please visit rmrgroup.com. $7,800,000 210 Sites Delaware $9,500,000 490 Sites Maine $25,000,000 1,300 Sites New Mexico $3,050,000 120 Sites Michigan $4,550,000 340 Sites Texas For more information on how Tremont can help you with your MH/RV community financing needs, contact: TREMONT REALTY CAPITAL FINANCIAL \ 29 Tremont Realty Capital An Experienced and Active Originator In MH & RV Communitiy Finance SEPTEMBER 2016 25 THE JOURNAL