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 arranged for a $55 million bridge loan to recapitalize a multifamily property located in Oakland, California.
The $55 million loan was completed with Centerline’s origination partner, C-III Commercial Mortgage LLC (“C-III”). The bridge loan was provided to Berkshire Property Advisors (“Berkshire”) for the refinance of the Domain Apartments.
Domain Apartments is a mid-rise multifamily complex that comprises 264-units contained in four, six-story buildings, and a 2,500 square foot retail unit on the ground floor. Berkshire is a vertically integrated national organization that specializes in multifamily equity and debt investments throughout the U.S. Since its inception, Berkshire has sponsored over 40 multifamily investment portfolios including seven discretionary, institutional multifamily equity funds, six multifamily mortgage funds, and two publicly traded REITs.
Improvements to the property – including the construction of a two-story underground garage – were made to the multifamily complex in phases, first between 2005 and 2007 with the original developer, and then between 2009 and 2011 with the current owner and borrower.
“Berkshire purchased the partially completed property in September of 2009 and invested approximately $48.7 million to complete the upgrades,” commented Paul Donahue, Managing Director in the Mortgage Banking Group at Centerline. “The property is currently 98% occupied and is considered to be a quality, high-end Class A rental project, thanks in large part to the build-out and wide variety of amenities.”
“Berkshire Property Advisors is a well-known, experienced investor and manager that focuses exclusively on multifamily investments,” continued Donahue. “In addition, the property is well-located and less than 2 blocks away from the BART public transportation system. These factors gave us great confidence in this deal.”
“We are extremely pleased with the financing solution provided by Centerline and C-III and the timely execution provided by their very experienced teams,” said Paul Sevieri, Senior Vice President of Berkshire.
Property amenities include a central lobby, on-site management, a rotating art gallery on the ground level, which features art from local artists rotated every month, “connection café,” which is a business center with full coffee service, a community room with sofas, billiards, a fireplace and full kitchen, a state of the art fitness center, a bike repair shop, a “serenity room” for yoga and meditation, outdoor seating areas with tranquility pools and fireplaces, and a pet walking area.
The property also has a storage room with cyclone fenced storage areas for rent to tenants on the ground floor and in the gated parking garage.
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 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