Centerline Capital Group Provides Fannie Mae DUS Loans to Refinance Two Properties on Long Island
— Total funding equals $53 million —
New York, NY — January 21, 2013 — 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 provided $53 million to refinance two apartment facilities located in Long Island, New York. The properties include:
- Fairfield Village at Commack. Centerline provided a $35 million loan to refinance Fairfield Village at Commack, a multifamily facility that includes 256 units housed in 16 two-story apartment units. The unit mix includes 128 one-bedroom apartments and 128 two-bedroom units. The property also has approximately 248 open parking spaces, and a detached garage which has space for 47 cars. Property amenities include a clubhouse with a fitness center, banquet room (with billiards), kitchen, and lounge, as well as a playground area and common area laundry facility for tenants. The property was built in 1968, and is in excellent condition, with unit interiors consistently upgraded every three years.
- Fairfield at Babylon. Fairfield at Babylon consists of six two-story residential buildings that include a total of 158 apartments, all of which are two-bedroom units that cater to adult living and have their own individual entrance. The property was built in 1966 and Centerline provided a loan in the amount of $18 million for the refinance. The property is improved with a clubhouse building that contains a leasing office, laundry and fitness rooms, and a banquet room (with billiards). The clubhouse was constructed in 2004 and the property also has 170 open parking spaces.
Proceeds from the loan will be used to pay-off the existing financing and provide funds for working capital. The property is currently being managed by Fairfield Properties, one of the largest owners/managers in Long Island, NY, for a non-related family trust.
“Both Fairfield at Babylon and Fairfield Village at Commack benefit from historically low vacancy rates and a stable occupancy,” commented George G. Haase, Director at Centerline Capital Group.
“In addition, the Long Island area is a stable submarket that is close in proximity to major, steady employment sources from New York City and Nassau County, and market conditions in the area are expected to continue to perform well.”
Both Fannie Mae fixed rate loans were locked in at 4.10% rate, for a 55% loan-to-value, 20-year term, and a 30-year amortization schedule. The Fannie Mae DUS program also allows borrowers the option to obtain supplemental financing during the term of the loan.
“This was a solid deal for Centerline,” added Haase. “We were pleased at the efficiency with which this deal came together and that we were able to meet the ongoing needs of the borrower.”
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 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.