An Ohio based developer engaged Remington to secure mezzanine financing to compliment its senior financing, which did not provide enough leverage to complete needed improvements to a medical office building. The developer recently purchased the building located in Dayton Ohio with substantial below market occupancy caused by prior ownership’s mismanagement. A quick closing required the developer to utilize a short term low leverage acquisition bridge loan. The developer required additional funding to make improvements to the property to attract tenants. The demands of the transaction required an entrepreneurial mezzanine lender that could quickly understand the market and share the developer’s conviction with the overall opportunity. Most formulaic mezzanine lenders were not willing to absorb the deal’s lease-up and market risks combined with the added risk of relatively high priced debt in the senior position.

Remington worked with the developer and created a finely tuned sense of the market and felt comfortable with the property’s projected lease-up. As a result, it was able to articulate the deal and its risks efficiently to its investor and delivered a $1.5MM mezzanine loan in approximately 10 days.

Shortly after closing, the developer secured a lease and required additional funding to continue with building improvements. Remington delivered another $1MM about four weeks after the first closing by simply adding to the principal balance of the original mezzanine loan. Based on the developer’s satisfaction with Remington’s execution of the mezzanine loan assignment, it awarded Remington the senior mortgage refinancing.