- Total funding equals $18.8 million -
New York, NY - January 6, 2014 - Centerline Capital Group, a provider of real estate mortgage services for affordable and conventional multifamily housing, announced today it has provided a conventional/taxable GNMA-backed/FHA Section 221(d)(4) New Construction loan in the amount of $18.8 million to build a new multifamily property in Austin, Texas.
The loan will be used to build The Waters at Willow Run Apartments, a proposed 242-unit garden style affordable housing community to be located on 14.28 acres in northwest Austin, Texas. The property will be located at E/S Burnet Road, North of Shoreline Drive. The proposed apartment development will include two- and three-story garden style residential buildings with a mix of one-, two- and three-bedrooms and a total of 16 buildings.
"The Waters at Willow Run will be financed using LIHTC`s in the amount of $6.8 million and $2.3 million in working capital and deferred development fee from Atlantic Housing Foundation," noted Jim Gillespie, Managing Director at Centerline Capital Group. "All of the units will be set aside for low-income residents and the project will provide much needed, quality, affordable housing for the local community."
"Austin`s above-average recovery is now above its prerecession peak. The labor force has increased significantly since the beginning of 2011 and the unemployment rate is low," commented Philip Melton, Senior Managing Director at Centerline. "With the ongoing job gains and a young professional working-age population, gains will likely continue at above average performance."
"Austin`s housing market will be among the first in the country to see a measurable rebound," added Gillespie. "This was a good investment in a solid local community for Centerline."
The borrower is Atlantic Housing Foundation Inc. Founded in 1999, the management team at Atlantic Housing Management consists of industry experts with over 100 years combined experience. AHM currently manages 25 properties consisting of over 6,500 units throughout Texas, Florida and South Carolina. Atlantic Housing Foundation is a 501(c)3 not-for-profit, whose mission is to promote and preserve quality affordable housing and related services for low and moderate income families, helping residents improve their lives. Atlantic Housing Foundation is committed to helping their residents by providing services that foster a sense of community, improve quality of life and promote personal growth and advancement.
"This transaction required approvals from several entities including the City of Austin, Travis County and Williamson County, which in the end took longer than anticipated," said Michael Nguyen, President and CEO of Atlantic Housing Foundation Inc. "Centerline worked closely with us and coordinated with HUD in order to ensure a prompt closing once all of the various governmental agencies had approved the transaction. We appreciate the patience, creativity and tenacity the team at Centerline exhibited throughout this project."
The new community will offer a full service clubhouse, leasing office, laundry facilities, swimming pool, playground, picnic and common area amenities.
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 affordable and conventional 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 221 employees in fourteen locations throughout the United States. To learn more about Centerline, visit www.centerline.com.
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Source: Centerline Holding Company (CharterMac) via GlobeNewswire