Intergroup Sources $4 Million in Secondary Financing
for Upscale Houston Project
January 15, 2003 - Tandy O. Lofland, President of Intergroup Capital, LLC, has announced the firm's participation in the closing of $4 million in secondary financing which allowed the construction start of Tremont Tower, an 8-story, $17.4-million upscale condominium project. The project is now underway on a prime site between the CBD and River Oaks, with completion expected later this year. Fifty percent of the 76 units were presold.
The Houston-based developer, Tremont Tower LLP, is the borrower for the second mortgage secured through a large Dallas, Texas-area private equity group brought to the project by Intergroup. The $10.4 million construction loan was provided by a local bank and the developer provided $3 million in equity for the project whose units range in price from less than $200,000 to over $600,000.
Structured finance is becoming more commonplace, according to Lofland, as primary lenders often provide less capital these days and developers therefore need to come up with more of their own funds, or seek preferred equity or mezzanine financing as the Tremont Tower developer did.
Intergroup's funding source brought speed and a level of flexibility and creativity to the table that larger financial institutions cannot typically match, Lofland said. The funding source also seeks hospitality and other project type investment and financing opportunities nationwide, and several other projects are presently in the evaluation and proposal stages with Intergroup.