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 $2.5 million loan facility to refinance Gates at Coralbay, an affordable multifamily housing development located in Waveland, Mississippi.
The Gates at Coralbay is comprised of 160 units housed in 14, two- and three-story garden-style buildings. This apartment community was completed and stabilized in 2010 using conventional debt and 9% low income housing tax credits. The project is 100% affordable and operates subject to Section 42 Low Income Housing Tax Credit guidelines.
The property was developed by New Horizons Development, LLC, a Mississippi-based real estate development company. The founding members of New Horizons Development are Louis Jurney, David Strange and George Provais.
“Since opening, Gates at Coralbay experienced a brisk lease-up and has maintained strong occupancy levels in the mid- to high-90% range,” said Jim Gillespie, Managing Director at Centerline Capital Group. “The asking rents are at a sizable discount to market providing an excellent price and value opportunity for renters in that market. In addition, the property is well situated with good access to a variety of employers, retail shops, schools, and medical facilities.”
Centerline refinanced the property using a HUD-insured mortgage under the Section 223(f) program, a non-recourse loan with an attractive fixed rate amortizing over a 35-year term.
“The property was eligible for permanent FHA financing under the extension of the ‘three-year rule’ waiver for 223(f) loans for affordable multifamily housing transactions,” continued Gillespie. “The refinancing allowed the borrower to prepay his construction financing with non-recourse permanent financing at historically low long-term interest rates, resulting in substantial overall savings.”
“We were pleased to partner with Centerline Capital Group on the refinancing of Gates of Coralbay,” commented Jurney with New Horizons Development. “The Centerline team was outstanding with great service and highly responsive throughout the process. We look forward to working with them on future transactions."
“The principals of New Horizons Development have a wealth of real estate experience and a complementary blend of expertise in development, accounting, legal, property management and construction,” noted Cindy Hannon, Senior Vice President at Centerline. “These factors, combined with the solid real estate fundamentals and strength of the local market, made this an attractive deal for Centerline.”
The unit mix includes 24 one-bedroom, one-bathroom apartments, 80 two-bedroom, two-bathroom units, and 56 three-bedroom, two-bathroom apartments.
Gates at Coralbay is beautifully landscaped and maintained, and property amenities on-site include a clubhouse, pool, playground, and a business center with computer lab, internet access, copier and fax machine. Apartment features include central heat and air with ceiling fans in each unit, washers and dryers in each unit, dishwashers, total electric with energy star rated appliances, disability access and storage. In addition, the property is wired for cable and internet access.
The Affordable Housing Debt group at Centerline provides mortgage financing for affordable multifamily properties throughout the United States. Centerline is a Fannie Mae DUS lender, Freddie Mac TAH lender, FHA-approved mortgage provider, bridge and CMBS lender, and source for other forms of alternative capital.
About Centerline Capital Group
Centerline Capital Group, a privately held real estate finance and asset management company, provides financing, investing and asset management services for affordable and conventional multifamily housing throughout the United States. Centerline is organized around three business units: Mortgage Banking, Affordable Housing Debt and Affordable Multifamily Housing. Under the Mortgage Banking and Affordable Housing Debt businesses, Centerline partners with developers, owners, and investors to provide them with capital to develop, acquire or redevelop their real estate assets. Centerline’s core debt products consist of Fannie Mae, Freddie Mac, or HUD/FHA financing. In addition, through several strategic alliances, Centerline offers various CMBS executions for multifamily and other commercial properties, bridge loans and select joint venture equity products. Today the firm’s lending platform manages and services more than $12.2 billion in loans, of which affordable housing makes up $3.1 billion. A leading sponsor of Low-Income Housing Tax Credit (LIHTC) funds, Centerline’s third business focuses on identifying and investing in affordable housing properties and managing those assets as a fiduciary for the fund investors throughout the asset’s and fund’s lives. Since inception, the firm has raised more than $10 billion in equity across 137 funds, and invested in over 1,600 assets spanning 47 states. Founded in 1972, Centerline is headquartered in New York City, with 221 employees in fourteen locations throughout the United States. Centerline is a strategic partner of Island Capital Group, a real estate merchant banking group headquartered in New York. To learn more about Centerline, visit www.centerline.com