2013-05-07 23:47:02 -
- Total funding equals $4.5 million-
New York, NY - May 8, 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, announced today it has provided a $4.5 million FHA 223(a)7 loan to
refinance a multifamily property located in Corsicana, Texas.
Lago de Plata Apartments is an affordable community that consists of 150 rental
units housed in 14 garden style buildings that were originally built in 1970,
but substantially renovated in 2003-2004 with the aid of a HUD 221d4 new
construction/rehab loan. The subject has a 20 year HAP contract that was
renewed in 2012.
The property has historically benefited the City of Corsicana by providing much
needed affordable housing in the community.
Located in Navarro County,
Corsicana is situated 55 miles southwest of downtown Dallas.
The borrower is single asset entity or 501c3 non-profit corporation organized
under the laws of the state of Texas. Proceeds from the loan will be used for
repairs and to replace reserve escrows.
"The 223a7 program was perfect for this property as it allows for existing HUD
mortgages to be refinanced to the original loan balance with reduced
documentation and quicker processing times to lower the interest rate,"
explained Bryan Cullen, director at Centerline Capital Group. "In this case,
the interest rate was dropped from 6.00% to 3.10%. In addition, the loan is
fully amortizing over 37 years as we were able to add 10 years to the initial
"We have completed three loans through Centerline's small loan program, one
through standard DUS and now a HUD loan," commented Jerry Jackson, officer of
the non-profit entity. "We have been pleased in each transaction with the
Centerline teams and look forward to working with them again in the future."
"The sponsors of this deal are repeat Centerline customers with solid real
estate experience and well performing multifamily and commercial real estate
portfolio," added Cullen. "These factors, combined with deal's solid real estate
fundamentals, and the borrower's relationship with Centerline made this a solid
deal for Centerline."
The unit mix includes 30 one-bedroom one-bathroom apartments, 30 two-bedroom
two-bathroom units, 22 two-bedroom one-bathroom townhomes, 60 three-bedroom one-
bathroom apartments, and eight four-bedroom one-bathroom townhomes.
Property amenities include a swimming pool, gazebo, community center with
kitchen, laundry room, playground and learning center.
The Centerline team that closed the loan included Bryan Cullen and Sandra Rothe.
The Mortgage Banking Group at Centerline provides mortgage financing for
conventional multifamily properties throughout the United States. Centerline is
a Fannie Mae DUS lender, Freddie Mac seller-servicer, FHA-approved mortgage
provider, bridge and CMBS lender, and source for other forms of alternative
About Centerline Capital Group
Centerline Capital Group, a privately held real estate finance and asset
management company provides financing, investing and asset management services
for affordable and conventional multifamily housing throughout the United
States. Centerline is organized around three business units: Mortgage Banking,
Affordable Housing Debt and Affordable Housing Investments. Under the Mortgage
Banking and Affordable Housing Debt businesses, Centerline partners with
developers, owners, and investors to provide them with capital to develop,
acquire or redevelop their real estate assets. Centerline's core debt products
consist of Fannie Mae, Freddie Mac, or HUD/FHA financing. In addition, through
several strategic alliances, Centerline offers various CMBS executions for
multifamily and other commercial properties, bridge loans and select joint
venture equity products. Today the firm's lending platform manages and services
more than $12.2 billion in loans, of which affordable housing makes up $3.1
billion. A leading sponsor of Low-Income Housing Tax Credit (LIHTC) funds,
Centerline's third business focuses on identifying and investing in affordable
housing properties and managing those assets as a fiduciary for the fund
investors throughout the asset's and fund's lives. Since inception, the firm
has raised more than $10 billion in equity across 137 funds, and invested in
over 1,600 assets spanning 47 states. Founded in 1972, Centerline is
headquartered in New York City, with 221 employees in fourteen locations
throughout the United States. To learn more about Centerline, visit
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Source: Centerline Holding Company (CharterMac) via Thomson Reuters ONE