SAN LEANDRO, CA—GlobeSt.com has exclusively learned that Centerline Capital Group, a provider of real estate mortgage services for affordable and conventional multifamily housing, has refinanced Terrace Garden Apartments here, and has also arranged Fannie Mae DUS loans for three multifamily properties in Oregon.
For the San Leandro, CA-deal, the company provided a full term interest only Fannie Mae loan in the amount of $5.5 million loan to refinance Terrace Garden Apartments, a property comprised of one, four-story apartment building and a one-story clubhouse.
Built in 1964, the property includes a total of 77 garden-style units situated on 2.19 acres of land. The unit mix includes 35 one-bedroom, one-bathroom units and 42 two-bedroom, one-bathroom apartments. Parking is provided on-site with 88 open parking spaces.
“The borrower is a repeat Centerline customer that has over 20 years of experience in multifamily ownership and management,” explains Krage Olrich, VP at Centerline. “The loan is a 10-year full term interest only loan which is attractive because it substantially increases the borrower’s cash flow. The facility was provided in a rapid 56 days from application to close and proceeds from the cash out refinance will be used to grow the business.”
San Leandro is located in Alameda County, in the San Francisco-Oakland-Fremont MSA. San Leandro is on eastern shore of the San Francisco Bay sandwiched between Oakland and Hayward. Terrace Garden Apartments is located approximately three miles south of San Francisco’s central business district and 15 miles south of Oakland’s central business district in close proximity to three major interstates (880 west, 580 east, and 238 south). The University of California, Berkeley is approximately 16 miles north of the property.
“The local market is strong with no reported plans for any new units to be added to market inventory within the submarket,” adds Olrich. “Terrace Garden Apartments is at 100% occupancy and outperforms the submarket’s average 98.3% occupancy. This was a solid deal for Centerline.”
Property amenities include fenced sundeck area with a pool, basketball area, community building with a media room, secure entrance, and three laundry rooms with a total of seven washers and dryers.
Centerline’s deal team included Olrich, May Hill, Stephanie Kwok, and April Swan-Rosney.
In the firm’s Oregon deals, the properties are located in Eugene and Portland and the total investment equals $16.3 million. “What’s unique about these loans is that we were able to leverage the flexibility of the Fannie Mae DUS loan program to truly add value for our clients,” notes Matthew Olrich, VP, at Centerline. “Through the program, we provided full term interest only loans on two deals, and addressed another’s clients financing objectives with a small supplemental loan to free up trapped equity.”
The properties include:
- Broadway Center Apartments. Centerline provided a $4.3 million Freddie Mac CME loan to refinance an existing Freddie Mac loan in the Centerline portfolio for Broadway Center Apartments. Located in Eugene, Oregon, Broadway Center is a 107-unit garden apartment complex that was built in 1978. The property is comprised of four, three-story buildings and one maintenance building.
The finance facility is a 10-year fixed rate loan with full-term interest only. Common area amenities include an on-site laundry room and leasing office. Parking is provided via 107 parking spaces which consists of 64 open spaces and 43 carports.
- Pacific Crest Apartments. Located in Portland, Oregon, Pacific Crest Apartments is a 156-unit garden apartment complex built in 1969 and 1974. Centerline provided a Fannie Mae 2nd mortgage in the amount of $980,000. The loan is cash out supplemental facility; proceeds will be used to upgrade the property.
Pacific Crest Apartments is comprised of 14, two-story buildings. Property amenities include a leasing office, fitness center, and laundry room. The property offers 214 parking spaces, including 168 open spaces, 26 carports and 20 garages.
- Twin Creeks Apartments. Twin Creeks Apartments is a 220-unit garden apartment complex that was built in 1996, 1998 and 2000. Located in Portland, Oregon, Centerline provided an $11 million Freddie Mac loan to refinance the property.
A low leverage transaction, the facility is a ten-year fixed rate loan with full-term interest only. The facility is comprised of 15, three-story residential buildings, and a leasing office/clubhouse. Common area amenities include two outdoor pools, a child pool, two spas, and a clubhouse that includes a fitness room, a laundry room, leasing office, playground, and a basketball court.
“The borrowing entities and principals have all been active in investing in multifamily properties in the local area,” adds Olrich. “The properties are all in good condition and well managed. The strength of the sponsors and underlying real estate fundamentals made this a good deal for Centerline. We were pleased that the loan structures came together so well.”