Centerline Capital Group Refinances a Multifamily Housing Property in Sacramento, California
— Total funding equals $9.8 million—
New York, NY — October 1, 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 structured a $9.8 million Fannie Mae loan to refinance a multifamily housing complex located in Sacramento, California.
The property, Villas at La Riviera, is a 199-unit project that was built in 1972. The owner bought the property in 2009, assuming a bond financing facility. Refinancing these bonds proved challenging for a variety of reasons, including ongoing property renovation, a long-term regulatory agreement, a change in the ownership entity, and a partial real estate tax exemption. Centerline’s expertise in bonds and affordable housing enabled it to beat out several other lenders for the assignment.
“This transaction demonstrates that not all Fannie, Freddie, and FHA lenders have equal capabilities,” commented Peter Clasquin, Senior Vice President, at Centerline Capital Group. “While others saw these challenges as an excuse to say no, we utilized our background in affordable housing to work through the challenges and say yes. In fact, we actually improved the loan amount and interest rate from our quote to closing.”
The deal was brought to Centerline by Adam Parker, a Vice President in Newmark Realty Capital’s Phoenix office. Commented Parker, "Centerline got comfortable with a number of deal points that made this refinance complicated. In the end, Centerline executed as promised, and I look forward to working with them again.”
Centerline is a Fannie Mae DUS lender, Freddie Mac seller-servicer, FHA-approved mortgage provider and conduit and bridge lender.
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 246 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.