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 funded through its subsidiary, Centerline Mortgage Capital, a portfolio of 12 garden style apartment buildings in the San Fernando Valley of Los Angeles. The total amount of financing by Centerline is $26.9 MM. The proceeds will be used to place 10-year fixed rates loans on the properties; the loans will range in size from $1.3 MM to $3.675 MM.
The deal was put into place by the Small Loan Group of Centerline that specializes in providing Fannie Mae small loan financing on stabilized multi-family and mobile home communities nationwide. Centerline’s Small Loan Group is headquartered in Irvine, California and focuses on deal sizes between one and five million.
“Many of the existing loans in the portfolio were adjustable rates, so converting them to a 10-year fixed rate facility will result in extinguishing long term interest rate risk for the owner and add a measure of stability to operational cash flow,” commented Centerline’s Rick Warren, Managing Director Mortgage Banking. “At Centerline, we continuously look to quality multifamily deals that are attractive to our investors and also make a significant impact on the communities where they exist.”
Triloki Kaushal, Chief Underwriter added, “At Centerline we have expertise in small loan portfolio financing. There’s an art to understanding and structuring portfolio transactions – the need to balance cash flows, returns and the borrower’s specific goals.”
Referring broker, Todd Sherman of First Pacific Financial, states, “We worked closely with everyone at Centerline including their analysts, underwriters and management. We were able to achieve all of our requested loan amounts and overcome many challenges that come from trying to do 12 deals concurrently. It was truly a team effort.”
Warren added, “June was the single largest month for the Small Loan Group since its inception. Clearly there’s a demand for our agency small loan product. We are also seeing a clear demand for a lender who can execute with certainty, precision and can complete a transaction quickly. ”
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. Centerline offers a range of both debt and equity financing 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 136 funds, and invested in over 1,300 assets spanning 47 states. The firm’s multifamily lending platform services more than $9 billion in loans. Founded in 1972, Centerline is headquartered in New York City, with 200 employees in eight offices throughout the United States. A strategic partner of Island Capital, Centerline is organized around four business units: Asset Management, Mortgage Banking, Affordable Housing Equity and Affordable Housing Debt. For more information visit www.Centerline.com