Centerline Capital Group Provides Loan Facilities for Three Multifamily Properties in the Midwest
— Total funding equals $14.3 million —
New York, NY — March 18, 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 three Fannie Mae loans that total $14.3 million to facilitate the acquisition of one property and refinance two multifamily properties in the Midwest.
The three loans were sourced and secured by the Centerline team based in Chicago and include:
- Arcade Estates West. Centerline provided a $4.2 million Fannie Mae loan to refinance the initial construction loan for Arcade Estates West, a newly constructed, 84-unit garden apartment complex located in Vadnais Heights, Minnesota. The property is comprised of 14, 2-story townhome style apartment buildings that were built between 2009 and 2012. The borrower is Arcade Estates West, LLC, a single-purpose single-asset entity formed to acquire, own and manage the property. Arcade Estates West is owned by Patrick and Carol Goff of Goff Homes, Inc. Commenting on partnering with Centerline to secure the financing, Pat Goff, Managing Director noted, “Working with Centerline was a pleasure. They kept the process moving along very well and the end result is great. They did a great job and I am more than satisfied.” Project amenities include a clubhouse/leasing office, attached garages, gazebo area, walking trail and a playground.
- Brighton Square. Brighton Square is a 122-unit garden apartment community that is located in Madison, Wisconsin. Centerline provided a Fannie Mae loan facility in the amount of $4.9 million to facilitate the acquisition of the property by Ansonia Properties, LLC for a purchase price of $6.3 million. The complex includes seven, two- and three-story apartment buildings that were built in 1972. Property amenities include a leasing office, laundry facilities and large storage closets in the basement of each building. Unit amenities include fully equipped kitchens with refrigerator, oven/range and disposal. Approximately 101 of the unit kitchens have been renovated, and the borrower plans to continue the renovation project and update the remaining units. In addition, Brighton Square has good visibility and drive-by appeal.
- Oak Knoll. Centerline provided a $5.2 million Fannie Mae loan to refinance Oak Knoll, a multifamily property located in Cary, Illinois. The garden style apartment complex comprises 100 units in four, two-story residential buildings. Oak Knoll was constructed in 1966 and renovated between 2007 and 2012. The borrower is Greenspire Capital, LLC, a single asset entity, Illinois Limited Liability Company formed in November 2011. Since purchasing the property in November 2011, the borrower has completed $172,000 in capital expenditures and has an additional $199,400 underway. Steve Cain, Principal with Greenspire Capital, said, “Centerline worked tirelessly to keep the loan process on track and was instrumental in getting the deal closed on time with a minimum of difficulty before the end of 2012. We were very happy to work with them to arrange the financing.” Property amenities include laundry facilities and a swimming pool. The swimming pool is in the process of being decommissioned and replaced with a splash pad.
“Oak Knoll, Brighton Square and Arcade Estates West were three solid deals for Centerline,” commented Adam Klingher, Senior Vice President at Centerline. “The properties are all in good condition, are well-managed, and enjoy very high occupancy rates. We were pleased these loans came together so well and were able to deliver on each of these financings.”
Centerline’s team, including Klingher and Brooke Jackson, were instrumental in arranging and closing these three transactions.
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 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 241 employees in 14 locations 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.