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 $28.9 million Fannie Mae DUS loan to refinance an apartment facility located in Coram (Long Island), New York.
The property is a luxury, over 55 market-rate rental community that includes 22 one- and two-story, luxury townhouse apartment buildings, plus a clubhouse building. Constructed in 2005, the property contains a total of 173 apartment units, all of which are two-bedrooms that cater to adult living, and have their own individual entrance and washer and dryer unit. A good portion of the units include direct access garages with automatic openers and full length driveways. The property also includes a detached garage building with parking for 20 cars.
The borrower is a large, Long Island-based multifamily owner, who elected to move forward on a 20-year loan term, with a 30-year amortization schedule. Given the current low interest rate environment, the borrower was able to lock in a rate of 4.22%. The Fannie Mae DUS program also allows borrowers the option to obtain supplemental financing during the term of the loan.
“The borrower had the opportunity to pay off their existing market rate loan without a prepayment penalty, but needed to do so in a very short period of time,” commented George G. Haase, Director at Centerline Capital Group. “Centerline was able to quickly structure a Fannie Mae loan in the early rate lock program and completed the loan – from receipt to signed application – in a swift six weeks.”
“The Long Island market enjoys one of the highest occupancies in the country, and this property was approximately 98% occupied at the time the loan was closed,” added Haase. “This was a solid deal for Centerline. We were pleased at the efficiency with which this deal came together and that we were able to meet the needs of the borrower.”
The Subject is specially zoned as a Planned Retirement Community, and has a deed restriction requiring tenants to be 55 years or older.
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 137 funds, and invested in over 1,600 assets spanning 47 states. The firm’s multifamily lending platform services more than $11.5 billion in loans. Founded in 1972, Centerline is headquartered in New York City, with 246 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.