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 three Freddie Mac loans that total $66.2 million to refinance three multifamily properties located in Pennsylvania.

The loans are all standard commercial mortgage executions that were closed simultaneously for the same borrower, a Pennsylvania limited partnership.  The loans all carry a 10-year term with 25-year amortization schedule and replace existing loans that were originated by Centerline and Freddie Mac.

The properties include:

»     Westgate Village Apartments.  Centerline provided a $23.7 million loan to refinance Westgate Village Apartments, a garden-style 230-unit multifamily facility constructed in 1974.  The property is located in Frazer (Chester County), Pennsylvania and is comprised of 15, two-story apartment buildings. In total, there are 98 one-bedroom units, 98 two-bedroom units, and 34 three-bedroom units.

Property amenities include a newly completed community center, pool, tennis courts, and a fitness center.  Unit amenities include fully equipped kitchens, washer/dryer, and private outdoor patios.

»     Fairways Townhouses.  Fairway Townhouses is a 160-unit garden-style multifamily complex that was built in 2000.  Centerline provided a $22.3 million loan to refinance this property that is located in Thorndale (Chester County), Pennsylvania.

Fairways Townhouses includes 23, two-story apartment buildings, with 10 of the buildings having basement levels. Property amenities include garage parking, a community room, pool, tennis courts, a fitness center, and an on-site day-care center.  Unit amenities include washer/dryer hookups, porches, fireplaces, dishwasher, disposal, fridge, microwave, gas stove, and air conditioning.

»     Fairway Apartments.  Centerline provided a $20.2 Freddie Mac loan to refinance Fairway Apartments, a 234-unit multifamily facility that was constructed in 1974 with additional structures built in 1997.  Also located in Thorndale (Chester County), Pennsylvania, Fairway Apartments is comprised of 31, two-story apartment buildings. The property has a mix of one-, two-, and three-bedroom apartments, and offers 600 parking spaces.

Property amenities include a community room, pool, tennis courts, a fitness center, and an on-site day-care center.  Unit amenities include fully equipped kitchens, washer/dryer, and private outdoor patios.

“The borrower is a repeat Centerline and Freddie Mac client with many years of experience developing, owning and managing multifamily real estate in the local area,” said Steven Cox, Director, and head of Centerline’s New York mortgage banking production team.  “The properties are all located in Chester County, considered to be the most affluent county in Pennsylvania, and there is very little new construction coming on line in the market in the near future.”

“In addition, historical vacancy rates at all three properties is very good, and the properties are in good condition and well managed,” continued Cox.”  We were pleased these loans came together so well and were able to deliver on each of these financings simultaneously.”

The properties are managed by First Montgomery Management (FMM), a well-known property management firm that presently has a total of 5,000 apartment units under management located throughout:  New Jersey, Pennsylvania, Delaware, South Carolina, and Virginia.

The deals were originated by the New York office team of Steven Cox and Michael Powell.

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 capital.

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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 www.centerline.com.

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Certain statements in this document may constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Other risks and uncertainties are detailed in Centerline Holding Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission, and include, among others, business limitations caused by adverse changes in real estate and credit markets and general economic and business conditions; our ability to generate new income sources, raise capital for investment funds and maintain business relationships with providers and users of capital; changes in applicable laws and regulations; our tax treatment, the tax treatment of our subsidiaries and the tax treatment of our investments; competition with other companies; risk of loss under mortgage banking loss sharing agreements; and risks associated with providing credit intermediation. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements speak only as of the date of this document. Centerline Holding Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Centerline Holding Company’s expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.

The Gates at Coralbay is comprised of 160 units housed in 14, two- and three-story garden-style buildings. This apartment community was completed and stabilized in 2010 using conventional debt and 9% low income housing tax credits.  The project is 100% affordable and operates subject to Section 42 Low Income Housing Tax Credit guidelines.

The property was developed by New Horizons Development, LLC, a Mississippi-based real estate development company.  The founding members of New Horizons Development are Louis Jurney, David Strange and George Provais.

“Since opening, Gates at Coralbay experienced a brisk lease-up and has maintained strong occupancy levels in the mid- to high-90% range,” said Jim Gillespie, Managing Director at Centerline Capital Group. “The asking rents are at a sizable discount to market providing an excellent price and value opportunity for renters in that market.  In addition, the property is well situated with good access to a variety of employers, retail shops, schools, and medical facilities.”

Centerline refinanced the property using a HUD-insured mortgage under the Section 223(f) program, a non-recourse loan with an attractive fixed rate amortizing over a 35-year term.

“The property was eligible for permanent FHA financing under the extension of the ‘three-year rule’ waiver for 223(f) loans for affordable multifamily housing transactions,” continued Gillespie.  “The refinancing allowed the borrower to prepay his construction financing with non-recourse permanent financing at historically low long-term interest rates, resulting in substantial overall savings.”

“We were pleased to partner with Centerline Capital Group on the refinancing of Gates of Coralbay,” commented Jurney with New Horizons Development. “The Centerline team was outstanding with great service and highly responsive throughout the process.  We look forward to working with them on future transactions.”

“The principals of New Horizons Development have a wealth of real estate experience and a complementary blend of expertise in development, accounting, legal, property management and construction,” noted Cindy Hannon, Senior Vice President at Centerline.  “These factors, combined with the solid real estate fundamentals and strength of the local market, made this an attractive deal for Centerline.”

The unit mix includes 24 one-bedroom, one-bathroom apartments, 80 two-bedroom, two-bathroom units, and 56 three-bedroom, two-bathroom apartments.

Gates at Coralbay is beautifully landscaped and maintained, and property amenities on-site include a clubhouse, pool, playground, and a business center with computer lab, internet access, copier and fax machine.  Apartment features include central heat and air with ceiling fans in each unit, washers and dryers in each unit, dishwashers, total electric with energy star rated appliances, disability access and storage.  In addition, the property is wired for cable and internet access.

The Affordable Housing Debt group at Centerline provides mortgage financing for affordable multifamily properties throughout the United States. Centerline is a Fannie Mae DUS lender, Freddie Mac TAH lender, FHA-approved mortgage provider, bridge and CMBS lender, and source for other forms of alternative capital.

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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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Certain statements in this document may constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Other risks and uncertainties are detailed in Centerline Holding Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission, and include, among others, business limitations caused by adverse changes in real estate and credit markets and general economic and business conditions; our ability to generate new income sources, raise capital for investment funds and maintain business relationships with providers and users of capital; changes in applicable laws and regulations; our tax treatment, the tax treatment of our subsidiaries and the tax treatment of our investments; competition with other companies; risk of loss under mortgage banking loss sharing agreements; and risks associated with providing credit intermediation. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements speak only as of the date of this document. Centerline Holding Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Centerline Holding Company’s expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.

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 $2.5 million loan facility to refinance Gates at Coralbay, an affordable multifamily housing development located in Waveland, Mississippi.

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 $2.5 million loan facility to refinance Gates at Coralbay, an affordable multifamily housing development located in Waveland, Mississippi.

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 $2.5 million loan facility to refinance Gates at Coralbay, an affordable multifamily housing development located in Waveland, Mississippi.

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 $2.5 million loan facility to refinance Gates at Coralbay, an affordable multifamily housing development located in Waveland, Mississippi.

In consideration of the substantial time and resources devoted by the Parties and their respective Representatives to negotiate in good faith with Hunt to attempt to enter a definitive agreement with respect to the proposed Transaction, the agreement that precludes the Company from exploring other alternatives was extended to 11:59 p.m. EDT on May 22, 2013 (from11:59 p.m. EDT on May 16, 2013.

The negotiations with Hunt are ongoing and there can be no assurance with respect to the terms or the timing of any transaction, or whether conditions to closing, including third party consents, will be satisfied and a transaction will be concluded at all.

As a matter of policy, the Company does not comment on or provide the market with updates as to the status of the negotiations with Hunt, nor will it comment upon any rumors with regard to either of the foregoing or make a further announcement regarding the Board’s consideration of any transaction with Hunt until such time, if ever, that it enters into a definitive agreement for a completed transaction or is otherwise required to make an announcement.

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 www.centerline.com.

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Certain statements in this document constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, statements relating to Centerline’s goal for the negotiations.  Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements speak only as of the date of this document. These statements are based on management’s current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Other risks and uncertainties are detailed in Centerline Holding Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission, and include, among others, business limitations caused by adverse changes in real estate and credit markets and general economic and business conditions; our ability to generate new income sources, raise capital for investment funds and maintain business relationships with providers and users of capital; changes in applicable laws and regulations; our tax treatment, the tax treatment of our subsidiaries and the tax treatment of our investments; competition with other companies; risk of loss under mortgage banking loss sharing agreements; and risks associated with providing credit intermediation. Except as required by law, Centerline expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Centerline’s expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.

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 that Jon Killough has joined the firm as Senior Vice President in the Affordable Housing Debt division.

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 that Jon Killough has joined the firm as Senior Vice President in the Affordable Housing Debt division.