Centerline Capital Group Refinances Five Multifamily Properties in Orange County, California
— Total funding equals $175 million —
New York, NY — May 5, 2014 — Centerline Capital Group, a provider of real estate mortgage services for affordable and conventional multifamily housing, announced today it has provided a $175 million Fannie Mae credit facility to refinance a five-property multifamily portfolio. The properties are all in excellent condition and well located within their respective submarkets in Lake Forest, Upland and Ontario, California.
The borrower is Western National Group, a premier owner and operator of multifamily properties in Orange County and principal Michael K. Hayde. Western National offers a full range of real estate services including construction and redevelopment, private equity investment management and property operations and fee management as well as specialized landscaping and maintenance services for apartments, condo associations and commercial buildings.
“The borrower has been a very active client in the multifamily market for decades,” commented Suzanne Cope, Senior Vice President in the Affordable Housing Debt division at Centerline Capital Group. “This structured credit facility with Fannie Mae was heavily negotiated and very complex due to the nature of the product. It provides for future advances, property releases, substitutions etc. However, the level of experience on all sides of the transaction helped facilitate a smooth and quick closing even with the payoff and defeasance of several existing bond deals. Centerline has had the pleasure of working with this client on over 16 properties with 3,292 units located in and around Orange County.”
The properties in the portfolio include:
» Emerald Court Apartments. Located in Lake Forest, California, Emerald Court Apartments is in excellent condition. The property is comprised of 32 two-story buildings with 288 units plus a single story leasing office/clubhouse built in 1986 over 22.87 acres. Property amenities include three swimming pools with spas, a recently remodeled clubhouse, two tennis courts, and two fitness centers. The property also has 534 parking spaces, including 242 tuck-under garages, 46 carports and 246 open spaces. Units have assigned parking.
» Westridge Apartments. Westwood Apartments is located in Lake Forest, California and is in excellent condition. The property is comprised of 39 two-story buildings with 390 units plus a single story leasing office/clubhouse built in 1988 over 25.5 acres. Property amenities include two swimming pools and four spas, two fitness centers, tennis courts, volleyball courts, BBQ and picnic areas, a children’s play area and a recently remodeled clubhouse. Parking on-site is provided with 744 parking spaces, including 321tuck-under garages, 66 carports and 357 open spaces. Units have assigned parking.
» Spring Lake Apartment Homes. Located in Lake Forest, California, Spring Lake Apartment Homes is comprised of 19 two-story buildings with 180 units plus a single story leasing office/clubhouse. Built in 1986 over 15.9402 acres, the property is in good condition. Property amenities include a swimming pool and two spas, a clubhouse, BBQ area, tennis court, four laundry rooms and a fitness center. The property also has 315 parking spaces, including 163 garages, 18 carports, and 134 open spaces.
» Mountain Spring Apartments. Located in Upland, California, Mountain Spring Apartments is in good condition and consists of one parcel with 13.771 acres situated at the southwest corner of Foothill Boulevard and Grove. The Property was built in 1986 and comprises 31 two-story residential buildings and a single-story leasing office/clubhouse. Common area amenities include five laundry rooms, a fitness center, two swimming pools, and two spas. In addition, Mountain Spring apartments has a total of 498 parking spaces, including 207 garage parking spaces, 134 carport spaces, and 157 open spaces.
» Park Centre Apartments. Well located in a mixed use neighborhood, Park Centre Apartments is comprised of 36 two-story buildings with 404 units plus a single story leasing office/clubhouse built in 1987 over 18.54 acres. Located in Ontario, California, property amenities include three swimming pools with spas, a fitness center, tennis court and five laundry rooms. Parking is provided via 800 parking spaces, including 387 open spaces, 190 carport spaces and 223 garage spaces.
“Suzanne did a terrific job navigating the complexity of this unusual deal and in negotiating on behalf of Western National Group,” added Philip Melton, Senior Managing Director at Centerline. “Fannie Mae’s leadership, insights and flexibility was also crucial in helping to close this deal. It was a wonderful team effort on behalf of an establish customer all with the main goal of preserving valuable affordable housing resources in the local market. We are pleased this deal came together so well.”
“The local market is stable, with a steady demand for rental housing. These factors combined with the strength of the borrower and their local expertise made this a solid deal for Centerline,” concluded Cope.
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 conventional and affordable 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 $10.4 billion in loans, of which affordable housing makes up $916 million. Founded in 1972, Centerline is headquartered in New York City, with 159 employees in 13 locations throughout the United States. To learn more about Centerline, visit www.centerline.com.