Centerline Capital Group Refinances a Multifamily Property in McAllen, Texas
— Total funding equals $2.75 million —
New York, NY — March 6, 2014 — Centerline Capital Group, a provider of real estate mortgage services for conventional and affordable multifamily housing, announced today it has provided a Fannie Mae DUS loan in the amount of $2.75 million to refinance a multifamily property located in McAllen, Texas.
St. Antimo Apartments is a Class A multifamily facility that is comprised of six residential buildings that houses a total of 68 units on 2.75 acres. The property was built in two 34-unit phases. Phase 1 was completed in March 2003 and Phase II was completed in September 2003. The two-story garden-style apartment buildings consist completely of one- and two-bedroom units.
The borrower is Jaime Reverte with St. Antimo, LLC, a Texas Limited Liability Company. The loan is a non cash-out refinance of a property already in Centerline’s portfolio.
“The borrower wanted to replace their existing maturing loan in November 2014 with a new loan at a lower interest rate,” noted Bryan Cullen, director at Centerline Capital Group. “The new loan we put into place enabled them to lower their debt service by $33,000/year.”
“The appraised value exceeded expectations, which enabled us to underwrite a maximum 65% LTV rather than a maximum 75% LTV, so the borrower received significantly better pricing after executing the application,” added Jake Kressner, assistant vice president at Centerline. “In the end, we were able to lock in a lower interest rate and waive the replacement reserve deposits and the non-recourse carve outs at the same time.”
Property amenities include controlled access to the community, a pool and spa, a playground and BBQ area, a clubhouse decorated in a contemporary style with a kitchen, lounging area, a business center, a fitness facility with TV, a laundry facility and a leasing center. The Property also has 114 parking spaces.
“This was a refinance of a Fannie Mae DUS loan we did nine years ago and our only Fannie Mae loan,” commented Reverte. “Centerline educated us about the loan and its attributes, and helped us through some legal and payoff complications. We are grateful for all the benefits and costs savings afforded by this new loan and hope to partner again with Centerline in the future.”
St. Antimo Apartments is in the city of McAllen southwest of San Hidalgo County, which is part of the Rio Grande Valley in South Texas. The neighborhood comprises a mix of older and newer developments mostly retail and residential, including Trenton Crossing, a shopping center anchored by Target, Marshalls, PetSmart and Kohl’s as well as several chain restaurants. There are also two newer shopping centers anchored by Wal-Mart and Lowe’s nearby and the area has local hospitals, banks and the McAllen Miller International Airport in close proximity.
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 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 $12.2 billion in loans, of which affordable housing makes up $3.1 billion. Founded in 1972, Centerline is headquartered in New York City, with 210 employees in 13 locations throughout the United States. To learn more about Centerline, visit www.centerline.com.