NEW YORK CITY-Centerline Capital Group has provided a $45.2 million Fannie Mae affordable MBS facility to refinance four multifamily properties in Harlem, the company announced in a statement.
The four properties, which comprise a total of 388 apartment units, are all mid-rise buildings that were built between 1920 and 1984, and each has Section 8 HAP contracts covering 99% of the units. The loans all carry similar terms: 75% loan-to-value, 1.20 debt service coverage, with a 10-year term and 35-year amortization.
The borrower is a Manhattan-based privately held real estate investment, development and management firm. The firm owns and operates approximately 2,400 apartment units throughout New York city, most of which receive some sort of rental assistance and provide affordable housing to their tenants.
According to a spokesperson for Centerline, the borrower was seeking to maximize their value in the assets after a period of time spent updating units, improving operations, and provide long-term financing at historically low interest rates.
“The principals have a proven track record in affecting positive change in residential neighborhoods,” says Philip Melton, senior managing director of Centerline’s Affordable Housing Debt Products Originations. “Their extensive experience, broad knowledge and expertise in developing, financing and managing real estate in New York, especially in the Harlem market, combined with the deal’s solid real estate fundamentals, made this a highly attractive deal for Centerline.”
The firm presently owns more than four million square feet of prime office, residential and retail properties, primarily in Manhattan. A spokesperson for Centerline declined to disclose the borrower and location of the properties to GlobeSt.com.
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