Low-Rate Construction Loan for Mountfort Project

BOSTON-Construction of the 37-unit Mountfort Street Apartments is proceeding with an $8.475-million loan at a current interest rate less than 4%. The rate is based on LIBOR plus 265 basis points.

The financing was arranged by Tremont Realty Capital senior director David Ross.

The $10.2-million multifamily rental project is being built at Mountfort and St. Mary’s streets, along the boundary between Boston and the neighboring suburb of Brookline.

“The developer, 120 Mountfort Street LLC, chose an excellent location to build a class-A product with underground parking,” Ross says in a statement. “We anticipate rapid lease-up at project completion. This loan gave the developer the flexibility to take advantage of today’s low floating interest rates, while also allowing him to fix his longer-term rate.”

Although the source of the money was not disclosed, Tremont Realty Capital deals with banks, life insurance companies, opportunity funds, pension funds, private investors and endowments.