- Total funding equals $15.2 million -
New York, NY - March 18, 2014 - Centerline Capital Group, a provider of real estate mortgage services for affordable and conventional multifamily housing, announced today it has provided a $15.2 million Fannie Mae Loan to enable the acquisition and renovation of Woodlake Apartments, an affordable multifamily facility.
Located at1749 N. Jog Road in West Palm Beach, Florida, Woodlake Apartments is a 224-unit multifamily development constructed in 1998. The property consists of 14 two-story apartment buildings, a one-story maintenance/laundry building and a single-story leasing office/clubhouse.
The borrower and developer is Woodlake Preservation, LP, a Florida limited partnership formed in 2012 for the specific purpose of acquiring and owning the fee interest and renovating Woodlake Apartments. An affiliate of New York-based The Related Companies LP, the developer was awarded tax-exempt bonds and 4% LIHTCs from the Housing Finance Authority of Palm Beach County and permanent financing through Fannie Mae`s Moderate Rehabilitation program to complete the acquisition and rehabilitation of Woodlake Apartments.
"While the property is in overall good condition, it is in need of upgrades to the building exteriors, unit interiors and the community building to preserve and maintain the property for future affordable tenants," noted Jim Gillespie, Managing Director at Centerline Capital Group. "Centerline Capital Group was able to obtain a $15.2 million fixed-rate Fannie Mae Moderate Rehabilitation loan to use in conjunction with equity from the sale of 4% LIHTCs."
Additional source of subordinate financing was provided from a $2,350,000 SAIL loan from Florida Housing Finance Corporation (FHFC). Tax-exempt bonds in the amount of $13,500,000 were issued by the HFA of Palm Beach County to meet the 50% test and will remain outstanding through completion of the rehabilitation and the placed in service date, at which time they will be redeemed. Equity in the amount of $8,495,000 was provided through the purchase of low income housing tax credits by PNC Bank, NA.
"Because the project will remain occupied throughout the rehabilitation, Centerline structured immediate funding through the Fannie Mae Moderate Rehabilitation program," continued Gillespie. "The financing structure provided several advantages, including the ability to lock the rate on an immediate taxable basis to take advantage of current low interest rates versus a forward rate lock, the removal of conversion risk, and no letter of credit required during the construction period."
The loan term is 16 years, with a 35-year amortization after 12 months of interest only payments. The financing will fund property renovations of more than $30,000 per unit.
"The short-term bond structure is a very good alternative to finance the preservation of affordable acquisition/rehabilitation transactions," said Mark Carbone of Related. "We are seeing a tremendous increase in demand for this product and look forward to partnering again with Jim and his team at Centerline on similar transactions."
"The successful acquisition-rehabilitation of Woodlake Apartments as a quality affordable housing complex will serve its residents well into the future," concluded Gillespie.
Woodlake Apartments is managed by TRG Management Company LLP, an experienced local management company with a large portfolio in the market and approximately 29 years of management experience in Florida. TRG currently manages over 40 properties of which 24 properties with 3,722 units are located in South Florida.
Property amenities include a community pool with heated spa, a tennis court, playground, volleyball court, newly remodeled fitness center, two laundry rooms and a combination leasing office/clubhouse. The clubhouse facility includes a full-size kitchen and several smaller office/party rooms. Parking is provided on-site with a total of 466 surface spaces, including 15 designated handicapped spaces.
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 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 $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 210 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