2013-01-16 17:04:16 -
- Total funding equals $11 million-
New York, NY - January 16, 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 an $11 million FNMA
Affordable Preservation loan facility to refinance Claremont Villas, an
affordable housing property located in Claremont, California.
Claremont Villas is a garden-style affordable housing multifamily facility
comprised of five, three-story buildings and a clubhouse, that includes a total
of 154 units. The property was built in 1994 and was originally financed
through a syndication of Low-Income Housing Tax Credits. At closing, the
property was outside of the 15-year tax credit compliance period, but within the
55-year compliance period. Proceeds from the loan will be used to pay off
existing debt.
"The borrowers came to Centerline when the underwriting process with another
lender stalled," noted Philip Melton, Senior Managing Director in the Affordable
Housing Debt division at Centerline Capital Group. "We were able to screen the
proposed loan and identify specific items that would require Fannie Mae Waivers
and approval, and within the first two weeks, Centerline underwriters had
visited the asset and were able to complete the Fannie Mae delegate underwriting
quickly."
The borrower is SP Investments Inc., which is owned by Paul H. Pfleger, and is
one of three entities that comprise Security Properties (SP). SP is a privately
owned real estate investment, development and management company focused on
multifamily residential properties. Since its formation in 1969, SP and its
partners have invested over $1 billion of equity in multifamily residential real
estate, representing a portfolio value in excess of $3 billion.
"Centerline demonstrated a high level of competence in this rather complicated,
income-restricted housing refinance, enabling Security Properties to outperform
its original execution," added Ilya Gamel, Director of Security Properties'
Affordable Housing Group.
"Claremont Villas is located in Los Angeles County, in a strong multifamily
market with rents that are below the market average which provided a great
upside to our client," commented Suzanne Cope, SVP of Debt Originations at
Centerline Capital Group. "Our team worked quickly to secure proper financing
for the borrower - a successful local owner-operator. We were pleased to see
this deal go from app to close in just over 50 days."
The property is professionally managed by Madrona Ridge Residential, a Security
Properties-affiliated property management firm that manages 5,500 units.
Parking at Claremont Villas is provided by a total of 118 surface spaces,
including 8 ADA spaces. Property amenities include a two-story clubhouse,
laundry room, lounge area, community room, outdoor swimming pool, barbeque area,
spa, recreation area and controlled access.
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.
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Source: Centerline Holding Company (CharterMac) via Thomson Reuters ONE
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