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.
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.