- Total funding equals $9.9 million -
New York, NY - April 8, 2013 - Centerline Capital Group, a provider of real estate mortgage services for affordable and conventional multifamily housing, announced today it has provided a $9.9 million Freddie Mac loan to facilitate the acquisition of Windmill Landing, an apartment complex located in Houston, Texas. The loan was structured with a 7-year term, interest accruing on a variable basis, and the principal amortizing over 30 years.
Built in 1983, Windmill Landing is a 259-unit garden-style apartment community that is comprised of 15 three-story buildings (including two non-residential buildings) located around two small private lakes.
"The previous owner mismanaged the property, accumulated deferred routine maintenance and did not make necessary capital improvements to the property," noted James Kelly, Vice President, Mortgage Banking at Centerline. "The borrower plans to spend a substantial amount of money in the first 12-months post acquisition on capital improvements and deferred maintenance. The largest planned expenses are to replace roofs, exterior painting, stairways/railings, rehabilitating a down unit, and installing GFI outlets," added John Beam, Managing Director, who is the account manager.
The property is located approximately 15 miles southeast of downtown Houston. The immediate area is generally comprised of older residential neighborhoods and multi-family developments located along secondary arteries and retail centers, car dealers, and newer multi-family developments located near primary arteries. Windmill Landing benefits from good access to the area`s employers, close proximity to Hobby Airport, Ellington Field, and the Gulf Pointe retail area located along the Gulf Freeway.
Windmill Landing also benefits from a lakefront location with jogging trails. Other property amenities include a swimming pool, business center, perimeter fence, exterior lighting, and laundry room.
The property is managed by U.S. Residential Group (USRG), which took over management in January 2014. USRG has proven track record with similar assets in improving properties operating performance through best-in-class management practices. Nationwide, they manage over 100,000 units in 500 communities.
"Windmill Landing is well located in a submarket with strong market dynamics and low average vacancy rates," added Kelly. "We were pleased this loan came together so well - it was a solid deal for Centerline." noted Beam.
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 $10.4 billion in loans, of which affordable housing makes up $916 million. Founded in 1972, Centerline is headquartered in New York City, with 159 employees in 13 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