NEWTON, Mass.--(BUSINESS WIRE)--The Chicago office of Tremont Realty Capital, a division of The RMR Group, today announced that it has structured financing for the acquisition of three contiguous properties in Hueytown, Alabama by 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 climate-controlled self-storage facility. The combined purchase price for all three assets was $4,000,000.
Tremont Realty Capital recommended 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 for the transaction totaling a combined $3,020,000. Notting Hill was financed through Freddie Mac, a government sponsored enterprise (GSE), at approximately 80% of the allocated purchase at 4% for 10 years on a non-recourse basis while Saddleridge and All Seasons were financed at 70% for five years at approximately 5%.
According to Tom Lorenzini, Senior Director of Capital Markets for Tremont, “We have experience working with clients to address financing needs across a broad range of property types, funding scenarios and geographies. 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. This financing transaction underscores Tremont Realty Capital’s ability to provide well-executed, timely, borrower-friendly capital solutions to complex funding situations.”
Tremont Realty Capital is a division of The RMR Group LLC. Tremont Realty Capital includes an operating business that specializes in commercial real estate (CRE) finance, principally raising debt and equity capital for owners of CRE, and an SEC registered investment adviser, Tremont Realty Advisors LLC, which is a wholly owned subsidiary of The RMR Group LLC and which principally provides investment advice concerning real estate debt investments, including mortgage debts and mezzanine financings for real estate businesses. Since its founding in 2000, Tremont has completed over $4.6 billion worth of CRE transactions and currently has approximately $160 million of real estate debt and equity assets under management. For more information on Tremont Realty Capital, please visit www.tremontcapital.com.
The RMR Group Inc. is a holding company and substantially all of its business is conducted by its majority owned subsidiary, The RMR Group LLC. The RMR Group LLC is an alternative asset management company that primarily provides management services to publicly traded REITs and real estate operating companies. As of December 31, 2016, The RMR Group LLC had approximately $27.2 billion of total assets under management, including more than 1,400 properties, and employed over 450 real estate professionals in more than 30 offices throughout the United States; the companies managed by The RMR Group LLC collectively had over 53,000 employees. The RMR Group Inc. is headquartered in Newton, Massachusetts. For more information on The RMR Group LLC, please visit www.rmrgroup.com.