New York, NY — September 12, 2012 — 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 structured a $9.8 million Fannie Mae loan to refinance a multifamily housing complex located in Sacramento, California.
The property, Villas at La Riviera, is a 199-unit project that was built in 1972. The owner bought the property in 2009, assuming a bond financing facility. Refinancing these bonds proved challenging for a variety of reasons, including ongoing property renovation, a long-term regulatory agreement, a change in the ownership entity, and a partial real estate tax exemption. Centerline’s expertise in bonds and affordable housing enabled it to beat out several other lenders for the assignment.
“This transaction demonstrates that not all Fannie, Freddie, and FHA lenders have equal capabilities,” commented Peter Clasquin, Senior Vice President, at Centerline Capital Group. “While others saw these challenges as an excuse to say no, we utilized our background in affordable housing to work through the challenges and say yes. In fact, we actually improved the loan amount and interest rate from our quote to closing.”
The deal was brought to Centerline by Adam Parker, a Vice President in Newmark Realty Capital’s Phoenix office. Commented Parker, “Centerline got comfortable with a number of deal points that made this refinance complicated. In the end, Centerline executed as promised, and I look forward to working with them again.”
Centerline is a Fannie Mae DUS lender, Freddie Mac seller-servicer, FHA-approved mortgage provider and conduit and bridge lender.
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.
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.