2013-03-20 14:02:55 -
- Total funding equals $11.2 Million-
New York, NY - March 20, 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 refinanced one property and facilitated the
acquisition of another using Fannie Mae's ARM 7-6(TM) product. Both loans were
provided to the same sponsor.
Fannie Mae's ARM 7-6 product offers variable rate financing with an embedded cap
and an option to convert to a fixed rate mortgage loan with no prepayment
premium at any time beginning on the first day of the second loan year and
ending on the first day of the sixth loan year. Conversion requires minimal re-
underwriting and although the loan amount may
not be increased at conversion,
supplemental mortgage financing may be requested at the same time.
The loans were sourced and secured by Jim Gillespie, Managing Director in
Centerline's New York office and include:
* Jewish Center Tower Apartments. Centerline provided an $8.5 million Fannie
Mae DUS® loan for the refinance of Jewish Center Tower Apartments, a 199-
unit apartment property located in Tampa, Florida. The property is a Section
8 subsidized high-rise apartment complex located in the Hyde Park
neighborhood of Tampa.
* Built in 1975, Jewish Center Tower Apartments is in excellent condition,
having undergone a number of capital improvements and system upgrades over
the past five years. The property also benefits from a 20-year project
based Section 8 HAP contract with an elderly designation (age 62 and older)
and is fully occupied with a waiting list. Proceeds from the Fannie
Mae loan were used to refinance the existing debt on the property with
additional cash-out proceeds available to the borrower for reinvestment and
expansion of their affordable housing portfolio through new acquisitions.
* Jordan Square Apartments. Jordan Square Apartments is a five-story mid-rise
building located in Shreveport, Louisiana that contains 170 Section 8
subsidized rental units. Centerline provided a $2.7 million Fannie Mae DUS®
loan to facilitate this acquisition. The property has benefitted from a long
term HAP Contract covering 100% of the total units since its development in
1978 with an elderly designation for residents age 62 and older.
* Proceeds from the Fannie Mae loan were used to acquire the property and fund
immediate repairs and property improvements.
"The borrower is an experienced nonprofit sponsor with a successful track record
of acquiring and operating affordable Section 8 communities, as well as local
experience in both the Shreveport and Tampa markets." commented Gillespie. "The
Fannie Mae ARM 7-6 product provides the borrower the flexibility to convert to a
fixed rate loan and conversion usually requires minimal additional
underwriting. We were pleased to deliver these to loans to this repeat
Centerline is a Fannie Mae DUS lender, Freddie Mac seller-servicer, FHA-approved
mortgage provider and source for other forms of alternative capital.
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 Multifamily Housing. 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. Centerline is a strategic partner of Island
Capital Group, a real estate merchant banking group headquartered in New York.
To learn more about Centerline, visit www.centerline.com.
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Source: Centerline Holding Company (CharterMac) via Thomson Reuters ONE