Centerline Capital Group Provides Financing for the Acquisition of an Affordable Housing Property in in Shawnee, Oklahoma
— Total funding equals $6.49 million —
New York, NY — December 17, 2013 — Centerline Capital Group, a provider of real estate mortgage services for affordable and conventional multifamily housing, announced today it has provided a $6.49 million Freddie Mac Targeted Affordable Housing Fixed Rate Capital Markets Execution for the acquisition of Chapel Ridge of Shawnee.
Located in Shawnee, Oklahoma, Chapel Ridge is a 208-unit apartment community that was built in two phases. Phase 1 comprises 144 units constructed in 1998 with the use of Low Income Housing Tax Credits. Phase 2 includes 64 market-rate units that were built in 1999 with conventional financing.
Chapel Ridge is made up of 18, two-story garden style and townhouse style apartment buildings, a gymnasium, and a clubhouse/leasing center. The property is located at 130 East 45th Street, in the far northern portion of the City of Shawnee, approximately 38 miles east from downtown Oklahoma City.
“Historically, Oklahoma City has outperformed the state and the nation with respect to unemployment, and the current rate in the MSA is 4.1%, which is below the State of Oklahoma’s rate of 4.9%, and notably better than the nation’s rate of 7.6%” commented Jim Gillespie, Managing Director at Centerline Capital Group. “At the same time, the Oklahoma economy has enjoyed broad-based expansion buoyed by strength in the state’s oil and gas industry and strong economic conditions statewide have pushed job and income growth above the national rate.”
The borrower is PC Chapel, LLC and the loan carries a seven-year term with five-year prepayment, 80% loan to value and is interest only for 12 months with a 30-year amortization.
“The borrower is a repeat Centerline client with significant real estate experience through owning and operating multifamily properties,” added Gillespie. “A Centerline-sponsored LIHTC fund was the original syndicator of the low income housing tax credits when the property was built as well as the seller and limited partner involved in the disposition of the property to the new purchaser. This is a quality deal and we were pleased that we could leverage the relationship and involvement on the sale to arrange a new debt opportunity for a new purchaser.”
Common area amenities include two swimming pools, a clubhouse with kitchen and business center, outdoor basketball court, community center/indoor basketball court, laundry facility, five playgrounds, moderate landscaping, controlled access gate, on-site maintenance and on-site leasing. The property also offers 406 open parking spaces.
The Affordable Housing Debt group at Centerline provides mortgage financing for affordable multifamily properties throughout the United States. Centerline is a Fannie Mae DUS lender, Freddie Mac TAH lender, FHA-approved mortgage provider, bridge and CMBS lender, and source for other forms of alternative capital.
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.