Centerline Capital Group Refinances Affordable Housing in Salinas, California
— Total funding equals $8.45 million —
New York, NY — September 20, 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, announced today it has provided an $8.45 million Freddie Mac Targeted Affordable Housing (TAH) loan to refinance Steinbeck Commons, an affordable, age-restricted apartment community located in Salinas, California.
Steinbeck Commons consists of one three-story building containing 100-unit rental apartments restricted to residents 62 years of age and older. The property benefits from a long-term Section 8 HAP contract that provides project-based rental subsidy for 100% of the units. The building contains 99 one-bedroom one-bathroom units and one two-bedroom one-bathroom apartment.
“The borrower is a repeat Centerline client with extensive affordable housing experience,” commented Jim Gillespie, Managing Director at Centerline Capital Group. “Centerline is pleased to assist by providing long-term financing through Freddie Mac to repay the acquisition bridge loan at competitive pricing and terms.”
Originally constructed in 1983, the property was renovated in 2000 with low income housing tax credits. The borrower acquired the property in October 2012, following the expiration of the 10-year tax credit period. A fund controlled by Centerline was the limited partner of the seller. The property is subject to a long-term regulatory agreement ensuring that 100% of the units remain affordable. The fixed-rate loan has a 10-year term and a 30-year amortization schedule.
“Steinbeck Commons is located in established area of Salinas, California with scattered single-family homes and multi-family developments nearby,” continued Gillespie. “The property also benefits from commercial developments that are located within a convenient distance along major thoroughfares. These factors and the strength of the sponsor made this a quality deal for Centerline.”
Property amenities include a community room with kitchen facilities, an exercise room, laundry facilities, library/study, picnic area with gazebo, on-site management, and video security system.
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 and asset management company, provides financing, investing and asset management services for affordable and conventional multifamily housing throughout the United States. Centerline is organized around three business units: Mortgage Banking, Affordable Housing Debt and Affordable Housing Investments. 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. A leading sponsor of Low-Income Housing Tax Credit (LIHTC) funds, Centerline’s third business focuses on identifying and investing in affordable housing properties and managing those assets as a fiduciary for the fund investors throughout the asset’s and fund’s lives. Since inception, the firm has raised more than $10 billion in equity across 137 funds, and invested in over 1,600 assets spanning 47 states. 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.