NEW YORK CITY-Centerline Holding Co., based here, and Hunt Capital Partners LLC, the affordable housing division of Hunt Cos., said Wednesday they're going ahead with the merger that emerged as a possibility a month ago. Hunt, which had acquired about 41% of Centerline's stock in late April, will pay $39.89 apiece for the outstanding common shares that Hunt or its affiliates do not already own.

In a statement, Centerline CEO Robert L. Levy says he's “very pleased about this transaction and excited for the opportunities that the combination with Hunt presents” for his company. “This is a very positive transaction for our employees and all of Centerline's stakeholders.” 

For Hunt's part, the deal is “accretive to Hunt's core business and we understand the portfolio,” says Alan Fair, president of El Paso, TX-based Hunt Capital, in a statement. “This acquisition will effectively double our portfolio of multifamily units to more than 280,000 units, a majority of which will be affordable housing product, which further underscores our record of building value within this sector.” Centerline's portfolio runs to $9.2 billion of investor equity under management, with 114 funds and more than 140,000 multifamily units.

The merger is currently expected to close in the third quarter, according to a release. Rothschild rendered a fairness opinion to Centerline's board in connection with the transaction, while Paul Hastings LLP served as legal advisor to the company. Paul, Weiss, Rifkind, Wharton & Garrison LLP and DLA Piper LLP served as legal advisors to Hunt. In May, GlobeSt.com reported that Centerline and Hunt had inked a “standstill and exclusivity agreement” in connection with Hunt's possible takeover of Centerline.