Centerline Capital Group Closes Five Property Deal in the Southeast
— Total funding equals $28.3 million —
New York, NY — December 19, 2013 — Centerline Capital Group, a provider of real estate mortgage services for conventional and affordable multifamily housing, announced today it has closed five deals in the southeast including three acquisitions and two assumptions. Centerline provided a total investment of $28.3 million in the form of a Fannie Mae DUS MBS mortgage to facilitate the multi-property deal.
The properties are all located in Alabama and Mississippi, and the borrower is a single-asset LLC. The acquisitions include:
» Crestview Apartments. Crestview Apartments, located in Birmingham, Alabama, is comprised of three, three-story residential buildings, and a single-story office/laundry building. The property houses 150 garden-style units, was built in 1978, and consists of three one- and two-bedroom floor plans. Centerline’s investment in Crestview Apartments was $4 million. The new loan terms include a 10-year term, 30-year amortization period, and a 9.5 year yield maintenance period.
» North Gate Apartments. Located in Meridian, Mississippi, North Gate Apartments is improved with 13, two-story residential buildings, and a single-story clubhouse/leasing office building. The property houses 104 units, was built in 1973, and consists of seven, one-, two-, and three-bedroom floor plans. Centerline provided a $3.175 loan to facilitate the acquisition of North Gate Apartments. Loan terms include a 10-year term, 25-year amortization period, and a 9.5 year yield maintenance period.
» East Gate Apartments. Centerline provided $3,125,000 for the acquisition of East Gate Apartments. Located in Meridian, MS, the property is improved with 10, two-story garden style apartment buildings and one single-story clubhouse/leasing office building. The apartment buildings contain 96 units that were constructed in 1982. The property includes three one- and two-bedroom floor plans. The new loan terms include a 10-year term, 25-year amortization period, and a 9.5 year yield maintenance period
The assumptions include Brookstone Apartments and Highpointe Apartments, both located in Birmingham, Alabama.
“The assets are located in southeastern markets with strong fundamentals including economic development and employment growth that has increased demand for rental housing,” commented Josh Messier, Vice President Mortgage Banking at Centerline Capital Group. “The Borrower is an experienced multifamily property owner and an existing Fannie Mae client. These factors made these transactions ideal candidates for a Fannie Mae execution and enabled us to close all five acquisitions within 60 days.”
“Centerline effectively structured this unique multi-property deal in a seamless and timely fashion,” noted Matthew Shane with Q10|Lutz Financial Services, the broker on the deal. “We hope to partner again with Centerline in the near future.”
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 real estate finance company, provides financing and investing for affordable and conventional multifamily housing throughout the United States. Centerline is organized around two business units: Mortgage Banking and Affordable Housing Debt. 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. 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.