NEW YORK, NY - 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 recently provided a $6.6 MM loan facility that enabled the acquisition of two multifamily properties in Utah. Centerline processed the loan through Fannie Mae's Multifamily Affordable Housing Program which allows for financing of Low Income Housing Tax Credit properties in their regulatory restricted use term.
The properties are both garden-style affordable apartment communities that comprise a total of 144 units. Located in Layton and South Odgen, Utah, the properties were outside the 10-year tax credit benefit, but within the 15-year initial compliance period.
Proceeds from the transaction facilitated an acquisition of both the GP and LP interest positions, which maintained the original borrowing entity for tax purposes. Simultaneously, the borrowing entity changed from an LP to an LLC. The borrowing entity included two local firms, an owner, developer and manager of apartment assets, and a private real estate investment firm that specializes in acquiring multifamily properties and other distressed real estate assets across the United States.
“The borrower needed to close quickly to meet the requirements of the purchase agreements, and two days prior to rate-lock, the properties both suffered wind storm damage,” noted Philip Melton, senior managing director, Affordable Housing Debt at Centerline. “Thankfully, with the help of Fannie Mae, we were able to get the appropriate bids and contracts, complete the engineering report, and the closing was delayed only by two weeks.
“In the end, we delivered as promised, on-time, despite challenges presented by Mother Nature,” added Karen Dubrosky, senior vice president at Centerline. “We were thrilled to be able to make this happen for our clients.”
Centerline is a Fannie Mae DUS lender, Freddie Mac seller-servicer, FHA-approved mortgage provider and source for other forms of alternative capital.
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 1,300 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 244 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