Since launch of the practice in September 2009 to address a largely underserved niche market, the small loan team has closed 29 separate transactions under the Fannie Mae DUS Program. They range in size from $1 million to $5 million, with the borrowers located throughout the Pacific Northwest and California.
Small borrowers have specific needs, says Warren, including certainty and speed of closings. "Small loans can be as complicated in structure, at times, as larger multifamilyloans," he says.
For example, SVP Jon Red recently closed a Washington State loan in 25 days. According to the borrower, Brian Robinson of Market Street, "In today's challenging lending environment it's essential to have a supportive and determined partner to help address financing needs."
Centerline SVP David Burt, also a member of the small loan team, agrees. "Banks are giving up or lowering expectations so quickly that if we cannot deliver what we promise—and what the borrower needs—we lose a market segment that is ready to grow in every major metropolitan area of the country," Burt says in a release.
Centerline's small loan group is poised to launch its small loan program in the Northeast during this quarter. "We believe there is much opportunity ahead of us in the Northeast market during the rest of 2010," Warren says.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
