2013-01-24 17:29:52 -
- Third acquisition with local sponsor; total funding equals $33 million-
New York, NY - January 24, 2013- Centerline Capital Group ("Centerline"), a
provider of real estate financial and asset management services for affordable
and conventional multifamily housing, and a subsidiary of Centerline Holding
Company (OTC: CLNH), announced today it has provided a $33 million loan for the
acquisition of Spyglass Hill Apartments, a multifamily property located in
Denver, Colorado. The transaction is a Fannie Mae market rate loan that will
finance the acquisition of the property at a purchase price of $40 million.
Located at 7100 East Mississippi Avenue, Spyglass Hill Apartments is a garden-
style multifamily complex that includes a total of 573 units housed in 31 two-
and three-story residential buildings and a single-story leasing office building
and single-story clubhouse.
The borrower is Spyglass 7100 LLC, a newly formed Colorado limited liability
company that is an affiliate of BMC Investments, whose CEO is Matthew Joblon.
"BMC is an active investor in the local market with a solid track record for
closing very quickly on deals and significantly improving asset quality upon
acquisition," said Suzanne Cope, SVP of Debt Originations at Centerline Capital
Group. "Centerline has had great success partnering with this sponsor, having
closed several deals together in 2012 and has great confidence in this deal. We
were all thrilled to execute this Fannie Large Loan in only 28 days from start
to finish."
"We had a small window to close this transaction and knew we could count on
Centerline to execute in the extraordinarily tight timeframe. They created true
value for BMC in the transaction because of their ability to underwrite,
understand and ultimately execute on the deal in the allotted timeframe - this
secured the deal for us," noted Joblon. "As we execute on our internal goal of
creating significant scale both locally and in other states, we will continue to
grow our relationship with Centerline."
The Denver market continues to improve as is indicated by its low 3.68% overall
vacancy rate and is forecast to continue to improve as there are currently no
plans to increase multifamily inventory in the immediate area. Spyglass Hill
Apartments is currently 94% occupied.
The unit mix includes 281 one-bedroom, one-bathroom units, and 292 two-bedroom,
one-bathroom apartments. The property also includes 996 surface asphalt parking
spaces.
Centerline is a Fannie Mae DUS lender, Freddie Mac seller-servicer, FHA-approved
mortgage provider and source for other forms of debt and equity.
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About Centerline Capital Group
Centerline Capital Group, a subsidiary of Centerline Holding Company (OTC:
CLNH), provides real estate financing and asset management services focused on
affordable and conventional multifamily housing. We offer a range of both debt
financing and equity investment products, as well as asset management services
to developers, owners, and investors. An industry leader, Centerline is
structured to originate, underwrite, service, manage, refinance or sell through
all phases of an asset's life cycle. A leading sponsor of Low-Income Housing
Tax Credit (LIHTC) funds, Centerline has raised more than $10 billion in equity
across 137 funds, and invested in over 1,600 assets spanning 47 states. The
firm's multifamily lending platform services more than $11.5 billion in loans.
Founded in 1972, Centerline is headquartered in New York City, with 246
employees in ten offices throughout the United States. A strategic partner of
Island Capital, Centerline is organized around four business units: Affordable
Housing Equity, Affordable Housing Debt, Mortgage Banking and Asset Management.
To learn more about Centerline, visit www.centerline.com.
About BMC Investments
BMC Investments, LLC ("BMC") is a real estate investment company specializing in
the development, acquisition, redevelopment and, ultimately, disposition of
multifamily properties throughout the United States. BMC currently owns and
manages over 1,800 units and is in the process of developing a 234-unit Class-A
apartment building in Cherry Creek. BMC has proven its ability to identify and
execute on hidden value in a multifamily property, source off-market
opportunities, successfully navigate complex transactions, and deliver strong
risk-adjusted returns. Based in Denver, CO, BMC strives for industry best
practices through disciplined acquisition standards and a fully integrated
investment and asset management platform, together with its property management
affiliate, BLDG Management Co. For more information visit
www.bmcinv.com.
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Source: Centerline Holding Company (CharterMac) via Thomson Reuters ONE
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