Tremont Mortgage Trust Closes $15.3 Million Bridge Loan to Refinance Prime Center at Northridge Office Park in Westminster, Colorado
NEWTON, Mass.–(BUSINESS WIRE)–Tremont Mortgage Trust (Nasdaq: TRMT) today announced the closing of a $15.3 million first mortgage floating-rate bridge loan to refinance Prime Center at Northridge office park. The property is comprised of two adjacent single-story multi-tenant office buildings with a total of approximately 125,000 square feet located at 1765 and 1865 W. 121st Avenue in Westminster, Colorado. TRMT’s manager, Tremont Realty Capital, was introduced to the transaction by ColumbiaNational, which advised the sponsors, Redfearn Capital and Foundation Capital Partners.
TRMT funded an initial advance of approximately $13.5 million at closing, with future advances of up to $1.8 million available for tenant improvements, leasing commissions and capital expenditures. The loan is structured with a three-year initial term and two one-year extension options, subject to the borrower meeting certain conditions.
Tom Lorenzini, President of TRMT, made the following statement:
“The closing of the Prime Center loan demonstrates our continued execution of our business plan to fund first mortgage whole loans secured by middle market and transitional commercial real estate. Prime Center is owned by an institutional borrower and is a prototypical loan for TRMT, with its stable current rent roll and likely enhanced collateral value as our borrower executes on the approved business plan. Our manager, Tremont Realty Capital, remains active in the market with a robust pipeline of potential opportunities to deploy capital in loans like Prime Center that deliver attractive risk-adjusted returns.”
Tremont Mortgage Trust (Nasdaq: TRMT) is a real estate finance company that originates and invests in first mortgage loans secured by middle market and transitional commercial real estate. TRMT is managed by an affiliate of The RMR Group Inc. (Nasdaq: RMR). Substantially all of RMR’s business is conducted by its majority owned subsidiary, The RMR Group LLC, which is an alternative asset management company with $32 billion in assets under management and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. For more information about TRMT, please visit www.trmtreit.com.
Tremont Realty Capital, on behalf of its capital sources, Tremont Mortgage Trust (Nasdaq: TRMT) and RMR Mortgage Trust (Nasdaq: RMRM), is a direct lender that invests in loans secured by middle market and transitional commercial real estate. Tremont Realty Capital is the trade name of Tremont Realty Advisors LLC, which is an affiliate of The RMR Group (Nasdaq: RMR). For more information about Tremont Realty Capital please visit www.tremontcapital.com.
WARNING CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever TRMT uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and negatives or derivatives of these or similar expressions, TRMT is making forward-looking statements. These forward-looking statements are based upon TRMT’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by TRMT’s forward-looking statements as a result of various factors. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond TRMT’s control. For example:
- The references in this press release to the closing of the Prime Center loan and the continued strength and solid execution of TRMT’s business plan to fund first mortgage, whole loans secured by middle market and transitional commercial real estate, as well as future opportunities to redeploy capital, may imply that TRMT will execute on additional loans and that its business will continue to perform at its current level or improve as a result. However, TRMT’s ability to execute on additional loans is subject to its ability to obtain additional cost-effective equity capital whether through early loan repayments or otherwise, as well as various risks, including the competitive nature of the commercial real estate lending industry, and other factors, many of which are outside its control. These and other risks and factors may prevent TRMT from executing on additional loans and executing on its business plan.
The information contained in TRMT’s filings with the Securities and Exchange Commission, or SEC, including under “Risk Factors” in TRMT’s periodic reports or incorporated therein, identifies other important factors that could cause TRMT’s actual results to differ materially from those stated in or implied by TRMT’s forward looking statements. TRMT’s filings with the SEC are available on the SEC’s website at www.sec.gov.
You should not place undue reliance upon forward-looking statements.
Except as required by law, TRMT does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
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.
Contacts
Kevin Barry
Manager, Investor Relations
(617) 658-0776