SACRAMENTO-GlobeSt.com has learned exclusively that Centerline Capital Group has provided $25.5 million in financing for three California-based multifamily properties, one in Stockton and two in Sacramento. Centerline, a subsidiary of Centerline Holding Co., provides real estate financial and asset management services for affordable and conventional multifamily housing.
Patmon Torcello LP, a Delaware limited partnership sponsored by Charles G. Patmon III, received an $8.5-million Fannie Mae loan to finance Torcello Apartments, a garden-style multifamily facility in Stockton. The property consists of 302 units that were developed in four phases, and each phase was financed separately with four individual loans.
The new Centerline loan facility will refinance the existing debt on Phase I and Phase 2 that includes 153 units that were built in 2002 and 2003. The loan is cross-collateralized and cross-defaulted with the two remaining Fannie Mae loans on Phase 3 and Phase 4.
Matt Olrich and Blanca Terrazas of Centerline were instrumental in the arranging and closing of the transaction. “Torcello Apartments is in excellent condition, and the refinance of Phase I and 2 enabled the borrower to lock in at a lower interest rate,” said Olrich in a prepared statement.
Torcello Phase I and 2 includes 16 buildings in three parcels on 5.98 acres of land. Amenities include remote gate access with video monitored guest access connected to residents’ TVs, central air and heating, a swimming pool and laundry facility.
Additionally, Olrich, Adam Leiden and William Anderson of Centerline provided $16.96 million in two Fannie Mae DUS loans to refinance two multifamily properties in Sacramento for a single sponsor: Fair Oaks Meadows Apartments and River Blue I. The borrower, JCM Partners LLC, is a Delaware entity formed in May 2000 that currently owns and manages many multifamily and commercial properties in Northern California. The two loans are cash-out refinances, and the proceeds from the cash-out will be used to purchase additional apartment investments. The loan term is seven years, with principal amortizing over a 30-year schedule, and the interest rate is 3.3%.
Fair Oaks Meadows, a garden-style community, received a $6.24-million refinancing loan from Centerline. The property, consisting of seven two-story apartment buildings and a leasing office/clubhouse, includes 44 one-bedroom/one-bathroom units, 23 two-bedroom/one-bathroom units and 28 two-bedroom/two-bathroom units. Amenities include an outdoor pool and spa, and the property has a total of 169 parking spaces including 96 covered and 73 open-surface spaces.
River Blu I, formerly known as Glenbrook Apartments, is a garden-style multifamily complex that received a $10.7-million loan from Centerline. The complex consists of 16 two-story apartment buildings, a clubhouse, three laundry rooms and a leasing office. The property unit mix includes 139 one-bedroom/one-bathroom apartments and 67 two-bedroom/two-bathroom units. Property amenities include an outdoor swimming pool and 304 parking spaces consisting of 206 covered carport and 98 open-surface spaces.
“We were pleased that we were able to secure these two loans simultaneously—at a very low interest rate—and provide the sponsor the funds needed to continue to invest in the local area,” said Olrich.
As GlobeSt.com previously reported, in September Centerline Capital Group structured a $9.8-million Fannie Mae loan to refinance Villas at La Riviera, a 199-unit multifamily complex in Sacramento.
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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.
