Centerline Capital Group Refinances a Multifamily Property in LaGrange, Georgia
— Total funding equals $2 million —
New York, NY — May 13, 2014 — Centerline Capital Group, a provider of real estate mortgage services for affordable and conventional multifamily housing, announced today it has provided an FHA/HUD 223(f) loan in the amount of $2 million to refinance a multifamily property located in LaGrange, Georgia.
Valley Ridge Apartment Homes is an affordable housing property located on 8.761 acres on the north side of LaGrange. It is comprised of 80 apartments housed in 10 two-story garden-style buildings and a community building and separate maintenance building. The property was initially developed in 2005.
The borrower is Valley Ridge Apartments, LP, sponsored by The Gateway Companies and principal Allan Rappuhn. The loan provided was coupled with the prior 9% Low Income Housing Tax Credit allocation, and the property remains subject to Section 42 Guidelines through the extended-use term.
“The new loan structure will result in the preservation of a valuable affordable housing resource in the local market,” noted Philip Melton, Senior Managing Director at Centerline. “The borrower is a strong established sponsor with extensive experience in the multifamily arena, having developed nearly 60 properties throughout Alabama, Georgia, North Carolina, South Carolina, Tennessee; which includes the management of 4 HUD-insured properties.”
“LaGrange, Georgia is situated between the Columbus MSA and the expansive Atlanta MSA, but is considered to be a regional trade and employment center,” added Jon Killough, Senior Vice President at Centerline Capital Group. “The local market is stable, with a steady demand for rental housing and there has been a decline in the construction of single and multifamily dwellings which has caused occupancies to rise. In addition, Valley Ridge is well located near schools, shopping and transportation arteries. These factors combined with the strength of the borrower made this a solid deal for Centerline.”
The unit mix consists of one, two and three-bedroom units affordable to residents at 30%, 50% and 60% of AMI, as well as a few units available for market-rate renters. Parking at Valley Ridge includes 160 surface spaces and property amenities include on-site leasing/management office with a community room, playground, basketball court, swimming pool, fitness room, a picnic area and laundry facilities.
Valley Ridge is professionally managed by Gateway Management Company, who has managed the property since July 2011. The firm is located in Birmingham, Alabama and is a full-service property management company formed to provide direct property and asset management for the properties; which is also owned by Mr. Rappuhn. Their current management portfolio consists of over 3,500 units throughout the Southeastern United States.
“Centerline was a good partner to us throughout the process,” noted Rappuhn. “This was a complex transaction that combined HUD financing with existing federal and state LIHTCs. The result is the preservation of much needed affordable housing in the market. We hope to partner again with Centerline in the near future.”
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.