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 $1.1 million loan facility to refinance Hargrove Estates Apartments, an affordable multifamily housing development located in Columbus (Lowndes County), Mississippi.
Hargrove Estates consists of 41, three-bedroom two-bathroom, single-family home rental units developed in a family oriented, residential subdivision setting located on 15 acres in Columbus, Mississippi. Each home contains 1,553 square feet of living space with an attached two-car garage. The property began construction in 2010 and was completed and stabilized in 2011 using conventional debt and 9% low income housing tax credits (LIHTC syndicated by Centerline Capital Group). The project is 100% affordable and operates subject to Section 42 Low Income Housing Tax Credit guidelines.
The borrower is Hargrove Estates, LP, a Mississippi limited partnership. The project was developed by New Horizons Development, LLC, a Mississippi-based real estate developer founded by principals Louis Jurney, George Provias, and David Strange.
“Centerline refinanced Hargrove Estates with a HUD-insured mortgage under the Section 223(f) program. The new loan is non-recourse and has an attractive fixed rate amortizing over a 35-year term,” noted said Jim Gillespie, Managing Director at Centerline Capital Group. “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, and 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 annual debt service savings.”
“This is the second deal we partnered with Centerline on over the past few months,” commented Jurney with New Horizons Development. “The Centerline team provided outstanding service and was highly responsive throughout the process. We look forward to working with them on future transactions."
“Upon opening, the property enjoyed a brisk 60-day lease up and has enjoyed occupancy levels at or near capacity since inception,” noted Cindy Hannon, Senior Vice President at Centerline. “In addition, New Horizons Development has a wealth of real estate experience and a complementary blend of expertise in development, accounting, legal, property management and construction. These factors and the strength of the local market made this an attractive deal for Centerline.”
Property amenities include a clubhouse with leasing/management offices and business center, swimming pool and playground area. Parking is more than adequate with each unit having additional driveway space complimenting the attached garage spaces.
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 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 Housing Investments. 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. To learn more about Centerline, visit www.centerline.com