Centerline Capital Group Provides FHA Financing for the Acquisition and Rehabilitation of a Multifamily Property in Shrevepor
— Total funding equals $2.45 million —
New York, NY — August 12, 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 provided a $2.45 million FHA loan for the acquisition and rehabilitation of an 84-unit apartment complex in Shreveport, Louisiana. FHA loan proceeds will fund the property acquisition and a small portion of the rehab, and, the majority of the proposed rehab will be funded from 9% federal tax credits to be provided by PNC Bank, the tax credit syndicator for the project.
Built in 1971 and rehabbed in 1997, Clear Horizons Apartments is a Section 8 multifamily property that consists of nine, three-story buildings. Proposed on-site improvements will average $66,000 per unit and includes new kitchens and bathrooms, interior carpet and floor coverings, washer/dryers, replacement of all electrical wiring, upgraded mechanical systems, new roofs for all nine buildings, and the construction of a new community center building.
The borrower is Montgomery, Alabama-based Summit Clear Horizons, L.P. All of the units in the facility are subject to a project based Section 8 HAP contract, and the property will have an extend land use restriction requiring the property to remain affordable to residents with incomes at maximum of 60% of the average medium income for the Caddo Parish, where the property is located.
“The borrower is planning repairs and capital improvements that will extend the useful life of the property and continue to provide much needed affordable housing to the local community,” commented Cynthia Hannon, Senior Vice President, Affordable Housing Debt Group at Centerline. Capital Group. “In addition, the occupancy at the property is currently, and has historically, been very strong and there will be continued high demand for this type of affordable product long-term. These factors made this an attractive deal for Centerline.”
“This was a complex deal with an extremely short timeframe to close,” said Kea Calame, Senior Development Officer, at Summit Partners. “We were thrilled that Centerline was able to efficiently work through the related finance issues and close the deal in a timely manner. We look forward to working with Centerline again in the very near future.”
“The financing for the project was processed and closed in just over 100 days, which according to the New Orleans HUD office, was one of the fastest executions for a 221(d)(4) transaction in the history of the program,” added Hannon.
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 136 funds, and invested in over 1,600 assets spanning 47 states. The firm’s multifamily lending platform services more than $11 billion in loans. Founded in 1972, Centerline is headquartered in New York City, with 243 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.