Centerline Holding Company (CharterMac) : Centerline Capital Group Refinances
an Affordable Housing Property in Claremont, California
- Total funding equals $11 million-
New York, NY - January 16, 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 (OTC: CLNH), announced today it has provided an $11 million FNMA
Affordable Preservation loan facility to refinance Claremont Villas, an
affordable housing property located in Claremont, California.
Claremont Villas is a garden-style affordable housing multifamily facility
comprised of five, three-story buildings and a clubhouse, that includes a
total of 154 units. The property was built in 1994 and was originally
financed through a syndication of Low-Income Housing Tax Credits. At closing,
the property was outside of the 15-year tax credit compliance period, but
within the 55-year compliance period. Proceeds from the loan will be used to
pay off existing debt.
"The borrowers came to Centerline when the underwriting process with another
lender stalled," noted Philip Melton, Senior Managing Director in the
Affordable Housing Debt division at Centerline Capital Group. "We were able
to screen the proposed loan and identify specific items that would require
Fannie Mae Waivers and approval, and within the first two weeks, Centerline
underwriters had visited the asset and were able to complete the Fannie Mae
delegate underwriting quickly."
The borrower is SP Investments Inc., which is owned by Paul H. Pfleger, and is
one of three entities that comprise Security Properties (SP). SP is a
privately owned real estate investment, development and management company
focused on multifamily residential properties. Since its formation in 1969, SP
and its partners have invested over $1 billion of equity in multifamily
residential real estate, representing a portfolio value in excess of $3
"Centerline demonstrated a high level of competence in this rather
complicated, income-restricted housing refinance, enabling Security Properties
to outperform its original execution," added Ilya Gamel, Director of Security
Properties' Affordable Housing Group.
"Claremont Villas is located in Los Angeles County, in a strong multifamily
market with rents that are below the market average which provided a great
upside to our client," commented Suzanne Cope, SVP of Debt Originations at
Centerline Capital Group. "Our team worked quickly to secure proper financing
for the borrower - a successful local owner-operator. We were pleased to see
this deal go from app to close in just over 50 days."
The property is professionally managed by Madrona Ridge Residential, a
Security Properties-affiliated property management firm that manages 5,500
Parking at Claremont Villas is provided by a total of 118 surface spaces,
including 8 ADA spaces. Property amenities include a two-story clubhouse,
laundry room, lounge area, community room, outdoor swimming pool, barbeque
area, spa, recreation area and controlled access.
Centerline is a Fannie Mae DUS lender, Freddie Mac seller-servicer,
FHA-approved mortgage provider and source for other forms of debt and equity.
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
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information contained therein.
Source: Centerline Holding Company (CharterMac) via Thomson Reuters ONE
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