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, announced today it has provided a $17.85 million Fannie Mae affordable loan to facilitate the acquisition of Redwood Park Apartments in Santa Rosa, California.
Located at 2001 Piner Road, Redwood Park Apartments is a 156-unit apartment complex consisting of 12, two-story apartment buildings and one, one-story community/leasing office building. Approximately 60 units have recently been renovated. The unit mix consists of 16, 1-bedroom apartments, 120, 2-bedroom units and 20, 3-bedroom apartments.
The Borrower is Redwood Park Venture LP and the sponsor is Security Properties. This is the second deal Centerline recently closed with Security Properties. In late 2012, Centerline provided the sponsor an $11 million FNMA Affordable Preservation loan facility to refinance Claremont Villas, an affordable housing property located in Claremont, California.
The property benefits from a California Section 214 Welfare Tax Exemption. Explains Suzanne Cope, SVP of Debt Originations at Centerline Capital Group, “As long as the property is under a regulatory agreement and provides 20% of the units to tenants that are at or below 80% of area median income, the property will benefit from a considerable real estate tax abatement of up to 90% of actual taxes but not special assessments.”
Redwood Park Apartments is in Sonoma County, California and Santa Rosa is located 56 miles north of San Francisco, 446 miles north of Los Angeles and 30 miles east of the Pacific Ocean. Santa Rosa is the county seat of Sonoma County and largest city in California’s North Coast, Wine Country and North Bay areas. It has 13 approved American Viticultural Areas and over 250 wineries.
“Sonoma County generally, and the city of Santa Rosa, have found renewed momentum, and job growth has been fueled by the county’s core industries,” continued Cope. “These factors, combined with the deal’s solid real estate fundamentals, strong sponsorship and high occupancy rates, made this the perfect deal for Centerline.”
“Our team worked under an extremely tight timeline to execute the loan on behalf of Security Properties,” added Philip Melton, Senior Managing Director in the Affordable Housing Debt division at Centerline. “We were able to close quickly thanks to our ongoing close working relationship. We hope to partner with SP on additional deals in the near future.”
On-site parking includes a total of 156 carport and 258 open surface spaces, including 5 ADA spaces. Property amenities include a lounge area and kitchenette, in-ground swimming pool with whirlpool spa, and laundry room.
Centerline is a Fannie Mae DUS lender, Freddie Mac seller-servicer, FHA-approved mortgage provider and source for other forms of debt and equity.