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 has provided a $39.6 MM Freddie Mac 10-year loan to refinance Runaway Bay Apartments, a multifamily property located in Virginia Beach, Virginia.
The proceeds of the loan will be used to pay off existing Freddie Mac debt and take advantage of current lower interest rates. The borrower is an affiliate of Harbor Group International, LLC (HGI), a Norfolk, Virginia-based private real estate investment and management firm that currently owns 48 multifamily properties and manages approximately 23,057 total apartment units, including 8,970 units in the local area.
Built in 1985, Runaway Bay Apartments is comprised of 14, three-story apartment buildings with a total of 440, garden-style units. Since purchasing the property in 2008, HGI has completed significant capital improvements that totaled over $1.1 million.
“The principals are repeat Freddie Mac borrowers with a proven track record owning and managing multifamily assets,” commented Kevin H. Smith, Director of Mortgage Banking at Centerline and the originator of the loan. “In addition, the property has enjoyed a historically stable occupancy, coupled with strong market fundamentals, which made this a highly attractive deal for Centerline.”
“Harbor Group International is pleased to have worked with Centerline Capital Group on the refinancing of Runaway Bay Apartments,” said T. Richard Litton, Jr., President, Harbor Group International, LLC. “Centerline provided exceptional service for this complex $39.6 million transaction and we look forward to working with them in the future.”
The Mortgage Banking Group at Centerline provides mortgage financing for conventional multifamily properties throughout the United States. 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. Centerline offers a range of both debt and equity financing 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 $11billion in loans. Founded in 1972, Centerline is headquartered in New York City, with 233 employees in ten offices throughout the United States. A strategic partner of Island Capital, Centerline is organized around four business units: Mortgage Banking, Affordable Housing Equity, Asset Management and Affordable Housing Debt. For more information 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.