Centerline Capital Group Refinances a Multifamily Property Located in Riverdale, Maryland
— Total funding equals $11.4 million—
New York, NY — June 12, 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 $11.4 million Fannie Mae DUS loan to refinance Auburn Manor, a multifamily property in Riverdale, Maryland. Riverdale is located in Prince Georges County, Maryland, which is just east of Washington, DC.
Auburn Manor is a 261-unit multi-family property that is comprised of 11 brick garden-style buildings and a pool building. Located at 6821 Riverdale Road, the facility was built in 1963 and was substantially renovated after a 1998 purchase that involved tax exempt bonds and 4% tax credits. The property tenants are limited to those earning no more than 60% of the area median income as adjusted for family size.
The new loan paid off existing indebtedness of $8.3 million and will fund repair and replacement reserve escrows of $600,000. The loan term is fifteen years, with a 30-year amortization schedule. The borrower is a Maryland Limited Partnership, controlled by AHD, Inc.
“The new loan we put into place carries a 15 year fixed rate of 4.55%,” noted Bryan Cullen, director at Centerline Capital Group. “It was structured with a longer term because it fit into the expiration date of the compliance period. In addition, the cash out allowed for some capital improvements and a return of equity to the investors.”
“Our team really enjoyed partnering with the Centerline team to quickly complete this transaction,” said Bruce Levin with MAC Realty Advisors, LLC. “The financing was time sensitive due to a bond repayment and the team was able to meet the month-end deadline successfully.”
Auburn Manor is located in an established neighborhood that has a mix of residential, industrial, commercial, and employment centers nearby. The property also benefits from very good regional highway access, as well as close proximity to major commercial thoroughfares in the area. In addition, the neighborhood is well served by public transportation.
“Prince Georges County is a strong metropolitan market and the borrower is a very experienced multifamily developer, owner and manager with more than 20 years of multifamily design, development, ownership, and management experience,” added Cullen. “These factors, combined with the deal’s solid real estate fundamentals, made this a good deal for Centerline.”
Property amenities include a leasing office with business center, small laundry centers in each building, a community pool, two children’s playgrounds and picnic areas. Parking is provided via 442 open parking spaces.
The 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, bridge and CMBS lender, and source for other forms of alternative capital.
About Centerline Capital Group
Centerline Capital Group, a privately held 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.