LAYTON, UT-GlobeSt.com exclusively learns that Centerline Capital Group recently provided a $6.6-million loan facility that enabled the acquisition of two multifamily properties in Utah. Centerline processed the loan through Fannie Mae's Multifamily Affordable Housing Program, which allows for financing of Low Income Housing Tax Credit properties in their regulatory restricted use term.
Although Centerline could not reveal the borrower’s identity, “The borrower needed to close quickly to meet the requirements of the purchase agreements, and two days prior to rate-lock, the properties both suffered wind storm damage,” explains Philip Melton, senior managing director, Affordable Housing Debt at Centerline. “Thankfully, with the help of Fannie Mae, we were able to get the appropriate bids and contracts, complete the engineering report, and the closing was delayed only by two weeks.
The properties are both garden-style affordable apartment communities that comprise a total of 144 units. Located in Layton and South Odgen, UT, the properties were outside the 10-year tax credit benefit, but within the 15-year initial compliance period.
Proceeds from the transaction facilitated an acquisition of both the GP and LP interest positions, which maintained the original borrowing entity for tax purposes. Simultaneously, the borrowing entity changed from an LP to an LLC.
The borrowing entity included two local firms, an owner, developer and manager of apartment assets, and a private real estate investment firm that specializes in acquiring multifamily properties and other distressed real estate assets across the US.
“In the end, we delivered as promised, on-time, despite challenges presented by Mother Nature,” adds Karen Dubrosky, senior vice president at Centerline. Centerline is a Fannie Mae DUS lender, Freddie Mac seller-servicer, FHA-approved mortgage provider and source for other forms of alternative capital.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
