NEW YORK, NY - Centerline Capital Group ("Centerline"), a subsidiary of Centerline Holding Company, an alternative asset manager focused on commercial real estate funds and financing, today announced it closed the last of nine multifamily housing loan transactions. All loans were transacted in 2008 with Fannie Mae under its DUS program on behalf of a single borrower for a total of $131 million.
Centerline provided the refinancing for a portfolio of eight South County apartment properties that allowed the borrower to pay off first and second mortgages on those properties and free up equity to acquire and complete the rehabilitation of a ninth apartment complex. The original eight multifamily housing developments included:
- 149 units in Torrance for $23.9 million
- 103 units in Hermosa Beach for $16.8 million
- 95 units in Redondo Beach for $14.7 million
- 95 units in Hermosa Beach for $14.6 million
- 78 units in Redondo Beach for $12.5 million
- 56 units in Redondo Beach for $8.1 million
- 48 units in Lomita for $5.3 million
- 44 units in Long Beach for $2.6 million
The ninth property to round out the borrower's portfolio of apartments is a 161-unit complex in a premier waterfront location in Redondo Beach. That loan, the largest so far, closed on October 10, 2008 for $32 million.
"The Redondo Beach property is in transition as a result of a recently completed exterior and partial interior renovation," said Dick Olrich, a Managing Director in Centerline's Agency Lending Products division in its San Rafael, CA office, who led the transaction team. "We were able to structure the acquisition loan with the first three years as interest-only to provide additional cash flow for the buyer." Also, at the time of the sale, the City of Redondo Beach held a ground lease on the property but Centerline was able to rate-lock the transaction early, before the City approved the sale, eliminating interest-rate risk for the buyer.
All nine properties carry the same loan terms: seven years at fixed rates, with the remaining year adjustable and pre-payable, without a pre-payment penalty any time during the adjustable rate period. "And the 161-unit property," added Dick Olrich, "is the best property in its market, with a superb Southern California beach location, good fundamentals and a strong owner-operator who can maximize the property's potential."
Source: Business Wire