SAN FRANCISCO-GlobeSt.com has exclusively learned that Centerline Capital Group, a subsidiary of Centerline Holding Co., has closed Fannie Mae DUS loans that total approximately $114 million, to refinance multifamily properties in Northern California for a single sponsor.
The borrower currently owns and manages numerous multifamily properties. The loan terms for the package of loans are for 10 years with 10 years of interest only payments.
''The borrower is an experienced owner and manager of multifamily properties," says Richard Olrich, managing director, at Centerline. "We were pleased that we were able to assist the borrower to secure these 10-year full term interest only loans at very attractive interest rates."
Centerline's team included Olrich, Matt Olrich, Adam Leiden, Jordan Kilbury, Blanca Terrazas and Vanessa Howes.
Further information about the borrower and about the properties were not disclosed to GlobeSt.com by deadline.
According to a recent report on the San Francisco apartment market from Marcus & Millichap, San Francisco is one of the nation's hottest apartment markets, which led to a 32% increase in deal flow last year. Thus far in 2013, the number of properties that have changed hands has cooled modestly as listings are becoming scarce, says a report.
“Sellers were able to command higher prices last year as buyers feverishly placed capital. The median sales price during the period was $216,300 per unit, up 5 percent from 2011. Buyers targeted smaller properties during the period,” the report says.
According to the report, average cap rates were in the low-5% range for all properties, but dipped below 5% in many deals involving higher-end assets. Year to date, average first-year returns have been in the high-4 percent range.
“Investors will have to stretch to outbid the large numbers of buyers in San Francisco. Owners, meanwhile, may want to consider investing while buyer demand is high,” says the report.
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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.
