Centerline Capital Group Partners with LEM Capital
— Alliance formed to facilitate equity capital solutions for multifamily investors nationwide—
New York, NY —December 5, 2012 — 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 formed a strategic alliance with LEM Capital to provide senior equity capital to qualified sponsors pursuing value-add multifamily investment opportunities.
“The program with LEM Capital is tailor made for properties targeted for acquisition and value enhancement through strategic repositioning, light to moderate rehab strategies, and/or superior management execution,” said Bill Hyman, Senior Managing Director at Centerline. “Savvy sponsors with the investment acumen to identify and secure such properties can significantly enhance their returns by leveraging their basic contributory equity alongside Centerline and LEM.”
This strategic alliance was formed earlier this year to attract top operators in the multifamily sector who seek third party capital. Working with the Centerline/LEM team, sponsors can position themselves to finance both the senior debt and a significant portion of the equity capital required for multifamily acquisitions.
“Using external capital to acquire properties affords our operating partners the freedom to deploy their own capital more broadly and expand their business in a way that would otherwise be unfeasible,” continued Hyman.
Availability of institutional equity for smaller deal sizes is often limited and difficult to locate. The new Centerline/LEM venture will provide senior debt and equity for deals sized between $15-50 million (with target senior equity investments sized between $3 and $10 million). Philip Block, Centerline Vice President, will lead the initiative for Centerline.
“Our partnership with Centerline enables us to provide multifamily investors with a one stop shop for both their debt and equity needs,” said Herb Miller, Partner at LEM. “We chose Centerline as a partner because of their stellar reputation in the multifamily sector and longevity in the industry. Our alliance will fill a definite void in the market.”
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. We offer a range of both debt financing and equity investment products, as well as asset management services 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 137 funds, and invested in over 1,600 assets spanning 47 states. The firm’s multifamily lending platform services more than $11.5 billion in loans. Founded in 1972, Centerline is headquartered in New York City, with 246 employees in ten offices throughout the United States. A strategic partner of Island Capital, Centerline is organized around four business units: Affordable Housing Equity, Affordable Housing Debt, Mortgage Banking and Asset Management. To learn more about Centerline, visit www.centerline.com.
About LEM Capital
LEM Capital manages a series of private equity funds with over $500 million of capital commitments under management. Founded in 2002, the firm originates and manages a diversified portfolio of commercial real estate structured debt and equity investments secured by multifamily, office, retail, industrial and hospitality properties across the United States and Canada.
LEM Capital provides a direct alternative to equity for owners of real estate. We provide senior equity tailored to meet the needs of each transaction. Since we are capitalized directly with private equity from institutional and high net worth investors, we can close deals quickly and reliably, without concern for third party funding, outside approvals, or the vagaries of the capital markets. After closing, we perform all asset management functions in-house, providing our clients with the comfort that comes only from a continual involvement with the transaction from origination to final payoff.
Creativity, reliability and continuity - these are the hallmarks that make LEM Capital a leading provider of structured debt and equity in today's commercial real estate marketplace. To learn more about LEM Capital, visit www.lemcapital.com.