Commercial Mortgage Programs
July 5th, 2001
T-Rex Capital, a new New York based mezzanine investor, has launched a $250 million real estate fund and related investment management company.
It will invest in large mezzanine and equity transactions with total transaction sizes of $50 million to $100 million in major markets, says Thomas M. Mulroy, chief executive officer. In a $100 million deal, the mezzanine portion may total $20 million to $30 million, he notes. It typically works with senior debt lenders who need a mezzanine piece.
It is currently most interested in office, multifamily and full-service hotels, in that order. But it can quickly jump between property types depending on the market.
Its deals are highly structured and call for creativity and flexibility, Mulroy says. Unlike senior debt lenders, the company cannot quote spreads over the phone; pricing calls for an evaluation of the transaction and its risk,
he says.
“We’re not a commodity type player, “he says. “We’re not a high-volume player. We’re a high-dollar player.”
The company, he says, “can do any capital structure that makes sense at the time. There’s a whole litany of ideas to consider.”
The company’s advantages are its nimbleness and experienced staff he asserts.
Mulroy was previously senior vice president of Starwood Financial Inc., now Istar, and Lazard Freres. He was also a client executive at Chase Manhattan Bank.
T-Rex President, Clifford J. Premeinger was previously a partner in the Washington, D.C., law firm Preminger & Glazer, which specializes in large commercial real estate transactions.
T-Rex Capital is a sister company of T-Rex Technology Centers, a pioneer in the carrier hotel industry. Although demand for carrier hotels, which hold telecommunications equipment, has fallen recently, Mulroy predicts the industry will begin recovering next year.