Centerline Provides Funding for MF Project

AUSTIN-Centerline Capital Group, a provider of real estate mortgage services for affordable and conventional multifamily housing, has provided a loan of $18.8 million to build a new multifamily property here.

The loan, a conventional/taxable GNMA-backed/FHA Section 221(d)(4) New Construction loan will be used to build the Waters at Willow Run Apartments, a proposed 242-unit garden style affordable housing community located on 14.28 acres in northwest Austin.

The proposed apartment development will include two- and three-story garden style residential buildings with a mix of one-, two- and three-bedrooms and a total of 16 buildings. 

“The Waters at Willow Run will be financed using LIHTC's in the amount of $6.8 million and $2.3 million in working capital and deferred development fee from Atlantic Housing Foundation,” noted Jim Gillespie, managing director at Centerline Capital Group.  “All of the units will be set aside for low-income residents and the project will provide much needed, quality, affordable housing for the local community.” 

“Austin's above-average recovery is now above its prerecession peak.  The labor force has increased significantly since the beginning of 2011 and the unemployment rate is low,” commented Philip Melton, senior managing director at Centerline.  “With the ongoing job gains and a young professional working-age population, gains will likely continue at above average performance.”

“Austin's housing market will be among the first in the country to see a measurable rebound,” added Gillespie.  “This was a good investment in a solid local community for Centerline.”

The borrower is Atlantic Housing Foundation Inc. Founded in 1999, the management team at Atlantic Housing Management consists of industry experts with over 100 years combined experience. AHM currently manages 25 properties consisting of over 6,500 units throughout Texas, Florida and South Carolina.

"This transaction required approvals from several entities including the City of Austin, Travis County and Williamson County, which in the end took longer than anticipated,” said Michael Nguyen, president and CEO of Atlantic Housing Foundation Inc. “Centerline worked closely with us and coordinated with HUD in order to ensure a prompt closing once all of the various governmental agencies had approved the transaction. We appreciate the patience, creativity and tenacity the team at Centerline exhibited throughout this project."

The new community will offer a full service clubhouse, leasing office, laundry facilities, swimming pool, playground, picnic and common area amenities.

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.