(RealShare Orange County convenes at the Hyatt Regency, Irvine, August 16.)
STANTON, CA-Centerline Capital Group has structured a $35.9-million loan to refinance Park Place Seniors Apartments, a class-B, affordable senior-housing property here on behalf of the borrower, a large local developer working in conjunction with a local non-profit corporation. The loan was a Freddie Mac CME to refinance the property.
Park Place Seniors Apartments is an age-restricted, class-B affordable complex that was built in 1996 utilizing low-income housing tax credits. Now that the 15-year tax-credit compliance period has expired, the sponsor was able to take out the current debt with conventional financing at very attractive terms.
The 10-year, non-recourse loan was used to buy out the partnership, upgrade the asset and return capital to the sponsor. The developer and its affiliates have built and operated significant real estate assets in Southern California, including more than 12,000 residences and 400,000 square feet of retail and entertainment amenities.
“This was a complex deal with many unusual aspects to consider,” said Peter Clasquin, SVP at Centerline, in a prepared statement. “We had to balance a number of affordable components—age and income restrictions, a real estate tax abatement, Section 8 tenancy and a long-term regulatory agreement—with Freddie Mac’s large-loan CME requirements. Our deal term worked closely with the borrower, non-profit partner, regulators and Freddie Mac’s legal team to create a structure that worked for all parties.”
The deal was brought to Centerline by George Mitsanas, a principal in Newmark Realty Capital’s Los Angeles office. “Centerline’s expertise in affordable housing and their relationship with Freddie’s Western region were integral throughout this transaction,” said Mitsanas. “We look forward to working with Centerline again.”
As GlobeSt.com had exclusively learned and previously reported, earlier this month Centerline simultaneously closed three Fannie Mae DUS loans that total $46.7 million to refinance multifamily properties in Northern California for a single sponsor.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
