Centerline Rolls Out MF Bridge Loan Program

NEW YORK CITY—Centerline Capital Group said Wednesday it had launched a multifamily bridge loan program. It's one of several new products the company plans to roll out under the ownership of the Hunt Cos., which acquired Centerline in November.

The new bridge loan program provides access to financing for multifamily acquisitions and recapitalizations that don't operate at stabilized-enough levels to support permanent term financing. Through the program, Centerline will structure financing for "properties that are expected to meet permanent financing criteria within 18 months of closing,” says Bill Hyman, senior managing director at Centerline. 

Hyman adds that this is a proprietary Centerline program. “Centerline will make all credit decisions,” he says. “We're now able to fund these loans in-house with the support of the Hunt Cos.”

Loan amounts under this new multifamily program will range from $5 million to $25 million, with no requirement on minimum economic occupancy rate. It will finance new properties in lease-up or distressed management turnarounds where tenancy needs to be rebuilt.

On a case-by-case basis, value-add plays will be considered. “In addition, clients can move from bridge to permanent Centerline financing with no exit fee,” says Hyman. 

The program is the second to be rolled out since Hunt Cos. closed on its acquisition of Centerline. In February, the company launched a bridge lending program for healthcare assets, funding loans for the acquisition, new construction and sub-rehab of community-based residential care facilities, assisted living and memory care facilities, nursing homes and special-use healthcare properties.

The healthcare lending platform includes three new loan structures: Centerline Bridge Loans, HUD Section 223f/232 Acquisition & Refinance Loans and HUD Section 232 New Construction & Sub Rehab Loans. “The program will benefit the sector by providing low fixed rate, construction, acquisition, or refinancing alternatives for long-term fully amortizing, non-recourse financing,” James F. Boris, director FHA loan production at Centerline, said in February.

Boris, who's in charge of driving new originations for the platform, added that it would be coupled with shorter-term, proprietary bridge loans “for developers seeking flexibility prior to locking in long-term financing.”