- Total funding equals $4.2 million -
New York, NY - January 22, 2014 - Centerline Capital Group, a provider of real estate mortgage services for affordable and conventional multifamily housing, announced today it has provided a conventional loan in the amount of $4.2 million to facilitate the acquisition and subsequent rehabilitation of a multifamily property located in Lawrenceville, Georgia.
Tanglewood Heights Apartments is a 130-unit garden-style affordable housing community located on a 12.69-acre site that was built in 1995. The property is comprised of 14 two- and three-story garden style residential buildings housing a mix of two and three bedrooms apartments. The loan represents both construction and permanent development financing, and the construction financing consists of 9% tax credits.
The borrower and developer is Tanglewood Heights Apartments, LP, sponsored by Prestwick Development and Kenneth G. Blankenship. Blankenship has experience in the local area and a strong understanding of multi-family development and financing. To date, he and his partners have developed 12 properties containing 807 units and their experience includes the rehabilitation of properties similar in both scope of repair and financing structure to the subject.
"The property is well located approximately 23 miles northwest of Atlanta`s Central Business District and has served low and moderate-income families since it was built," noted Jon Killough, Senior Vice President at Centerline Capital Group. "The Property is in good condition overall, but is in need of repairs to address limited deferred maintenance and the modernization of various physical components."
"The new loan structure will allow for improvements that will enhance the overall condition and aesthetic appearance of the property," added Philip Melton, Senior Managing Director at Centerline. "The planned improvements will result in the preservation of a valuable affordable housing resource in the market. And, since the property and neighborhood are well-suited for their intended occupancy, their long-term capacity to provide affordable housing for their residents will be greatly improved."
The apartment community currently includes a leasing office, central laundry facility, and a playground and picnic area. As part of the rehabilitation, which totals $6,851,006, or $52,700 per unit, the building housing the leasing office and laundry facility will be demolished. In its place, a new clubhouse featuring a leasing office, fitness center, computer center and laundry area will be built. In addition, a swimming pool will be added as well as a new playground and picnic area with a pavilion.
"Centerline effectively structured this unique deal in a seamless and timely fashion," noted borrower and developer Blankenship. "This was a complex transaction that resulted in the preservation existing affordable housing, and required coordination with the Georgia Department of Community Affairs to combine HUD financing with new federal and state LIHTCs. Centerline delivered on the loan and we are looking forward to improving the property so it can continue to provide much needed affordable housing in the market. We hope to partner again with Centerline in the near future."
"This was a good investment with a strong established sponsor in a solid local community for Centerline," added Killough.
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