Southern California Borrower Gets $23M for Nine Properties

(Mark Your Calendars: RealShare REAL ESTATE 2012, March 22^nd in Los Angeles).

LOS ANGELES-GlobeSt.com has exclusively learned that a Southern California borrower has acquired affordable MBS loans totaling $23 million for the refinance and acquisition of nine individual multifamily properties. The properties are located in a variety of markets, including Memphis and Cleveland, TN; Birmingham, AL; Temple, TX; Kansas City, MO; Gastonia, NC; and Cincinnati, Dayton and Franklin, OH.

Although GlobeSt.com could not obtain the identity of the borrower by deadline, we did learn that the borrower is a commercial real estate owner and management company that specializes in Section 8 housing across the country and is among the country’s largest owners and managers of HUD subsidized housing with more than 13,500 units in 15 states.

Centerline Capital Group, a subsidiary of Centerline Holding Co., provided the loan, where terms were 10 years with 30-year amortization. The assets were financed at rates ranging from 75% loan-to-value with 1.30 debt service coverage to 80% loan-to-value with 1.20 debt service coverage. 

“Centerline was instrumental in providing the financing the borrower needed for the swift acquisition of a number of small Section 8 housing deals,” explains Suzanne Cope, affordable debt originations at Centerline Capital Group. “The unique structure we put into place served to accommodate a section 8 overhang to market. The borrower was pleased to get the financing they needed to quickly close multiple deals in a variety of markets.”

Centerline is a Fannie Mae DUS lender, Freddie Mac seller-servicer, FHA-approved mortgage provider and source for other forms of traditional and alternative capital.