centerline capital group

New York, NY — July 6, 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 $35.9 million Freddie Mac Capital Markets Execution (“CME”) loan facility to refinance a senior housing property located in Stanton, California.

The property, Park Place Seniors Apartments, is an age-restricted, Class B affordable complex that was built in 1996 utilizing low income housing tax credits.  Now that the 15-year tax credit compliance period has expired, the sponsor was able to take out the current debt with conventional financing at very attractive terms.  The 10-year, non-recourse loan was used to buy out the partnership, upgrade the asset, and return capital to the sponsor.

The borrower is a large local developer working in conjunction with a local non-profit corporation.  The developer and its affiliates have built and operated significant real estate assets in Southern California, including more than 12,000 residences and 400,000 square feet of retail and entertainment amenities.

“This was a complex deal with many unusual aspects to consider,” commented Peter Clasquin, Senior Vice President, at Centerline Capital Group.  “We had to balance a number of affordable components –age and income restrictions, a real estate tax abatement, Section 8 tenancy, and a long-term regulatory agreement – with Freddie Mac’s large-loan CME requirements. Our deal team worked closely with the borrower, non-profit partner, regulators, and Freddie Mac’s legal team to create a structure that worked for all parties.  We were thrilled to see the deal come together.”

The deal was brought to Centerline by George Mitsanas, a principal in Newmark Realty Capital’s Los Angeles office.  Commented Mitsanas, “Centerline’s expertise in affordable housing and their relationship with Freddie’s Western Region were integral throughout this transaction. We look forward to working with Centerline again.”

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 136 funds, and invested in over 1,600 assets spanning 47 states. The firm’s multifamily lending platform services more than $11 billion in loans. Founded in 1972, Centerline is headquartered in New York City, with 243 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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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.