NEWTON, Mass.--(BUSINESS WIRE)--Tremont Mortgage Trust (Nasdaq: TRMT) today announced the closing of an $18.1 million first mortgage bridge loan to finance the acquisition of an 184,000 square foot, 14-story office tower located in Metairie, Louisiana.
This floating rate loan includes initial funding of approximately $15.8 million and an as-is LTV ratio of approximately 80%. This loan also includes future funding allowance of $2.3 million for tenant improvements, leasing commissions, marketing and capital expenditures. The loan has a three-year initial term and two one-year extension options.
“The execution of this acquisition bridge loan underscores the opportunity we see for TRMT to provide debt capital for owners of middle market and transitional commercial real estate,” said David Blackman, Chief Executive Officer of TRMT. “We ultimately expect to leverage this loan with borrowings under our repurchase facility, creating additional capacity for loan originations.”
Tremont Mortgage Trust (Nasdaq: TRMT) is a real estate finance company that focuses primarily on originating and investing in first mortgage loans secured by middle market and transitional commercial real estate. Tremont Mortgage Trust is managed by Tremont Realty Advisors LLC, an SEC registered investment adviser, which is an indirect subsidiary of The RMR Group Inc.
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- MR. BLACKMAN STATES THAT TRMT SEES AN OPPORTUNITY FOR IT TO PROVIDE DEBT CAPITAL FOR OWNERS OF MIDDLE MARKET AND TRANSITIONAL COMMERCIAL REAL ESTATE. HOWEVER, THAT PERCEIVED OPPORTUNITY MAY NOT EXIST OR CONTINUE AND TRMT MAY FAIL TO SUCCESSFULLY EXECUTE ON ANY SUCH OPPORTUNITY.
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- MR. BLACKMAN REFERENCES TRMT’S EXPECTATION THAT LEVERAGING THE ANNOUNCED LOAN WITH BORROWINGS UNDER TRMT’S REPURCHASE FACILITY WILL CREATE ADDITIONAL CAPACITY FOR LOAN ORIGINATIONS. THIS MAY IMPLY THAT TRMT WILL BE ABLE TO SUCCESSFULLY ORIGINATE ADDITIONAL LOANS. TRMT’S ABILITY TO ORIGINATE ADDITIONAL LOANS IS SUBJECT TO VARIOUS UNCERTAINTIES AND CONDITIONS, INCLUDING THOSE BEYOND TRMT’S CONTROL, SUCH AS MARKET CONDITIONS. TRMT MAY NOT SUCCEED IN MAKING ADDITIONAL INVESTMENTS IN THE FUTURE.
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A Maryland Real Estate Investment Trust with transferable shares of
beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.