From Zero to $500 Million in 2.5 Years: Centerline Capital Group Is Making its Mark on the Small Loan Market
— Centerline’s Small Loan Division funds 271 separate transactions—
New York, NY — June 15, 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 that its Small Loan Division has achieved a key milestone as one of the fastest growing lenders in the small loan market. Since its inception in 2010, Centerline’s Small Loan Division has provided more than $500 million in funding through 271 separate transactions.
“Centerline established its Small Loan Division approximately two and a half years ago to address the specific financing needs of smaller properties,” said Bill Hyman, Senior Managing Director and head of the Mortgage Banking Group. “Thanks to our existing in-house lending expertise, we were we able to extend our mortgage banking platform to fund these specialized transactions.”
The Small Loan Division is part of Centerline’s national mortgage banking platform that has focused exclusively on the multifamily sector for the past 30 years. The Small Loan Division provides loans between $1 and $5 million, with an average loan size of $1.8 million. The group is headquartered in Irvine, California under the direction of Rick Warren and has its own dedicated team of experienced originators and underwriters who ensure owners and investors achieve competitive pricing from stable and dependable lenders.
“We provide expert solutions to satisfy the specific needs of the small loan market,” commented Warren. “Our main goal is to move clients through the loan process expeditiously, responding quickly with credit decisions, critical updates, and news of any lending guideline changes.”
The Small Loan Division closed over $200 million in financing last year, including a portfolio deal of $27 million, representing the largest single transaction for the unit since it began. The Division has also been expanding geographically to serve the needs of developers/operators in new regions. In mid-2011, the group hired Charlie Cole as Regional Director, responsible for the Central Region of the United States, including Texas and the surrounding states, and John Caulfield as Regional Manager to lead efforts in Northern California.
“We are delighted with the rapid growth and success of the Small Loan Division at Centerline,” continued Hyman. “Rick and his team have developed a robust business across the United States with a reputation for stellar execution. We are well-positioned for continued growth.”
In 2011, the Mortgage Banking Group at Centerline completed more than $1.3 billion in transactions across its Fannie DUS, Freddie Mac Seller-servicer, and FHA product lines and maintains a portfolio of over $8.4 billion.
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. Centerline offers a range of both debt and equity financing 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 136 funds, and invested in over 1,300 assets spanning 47 states. The firm’s multifamily lending platform services more than $11billion in loans. Founded in 1972, Centerline is headquartered in New York City, with 233 employees in ten offices throughout the United States. A strategic partner of Island Capital, Centerline is organized around four business units: Mortgage Banking, Affordable Housing Equity, Asset Management and Affordable Housing Debt. For more information visit www.Centerline.com.
Certain statements in this document may constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Other risks and uncertainties are detailed in Centerline Holding Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission, and include, among others, business limitations caused by adverse changes in real estate and credit markets and general economic and business conditions; our ability to generate new income sources, raise capital for investment funds and maintain business relationships with providers and users of capital; changes in applicable laws and regulations; our tax treatment, the tax treatment of our subsidiaries and the tax treatment of our investments; competition with other companies; risk of loss under mortgage banking loss sharing agreements; and risks associated with providing credit intermediation. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements speak only as of the date of this document. Centerline Holding Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Centerline Holding Company's expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.