Centerline Introduces Proprietary Bridge Loan Program for Pre-Stabilized Properties
- Apr 25, 2014
Following its acquisition by the Hunt Companies, Centerline Capital Group is introducing a series of proprietary multifamily financing products.
The company has just announced a new multifamily bridge loan program which is financed off of its own balance sheet. The bridge loan product will provide short-term financing for multifamily properties that have not yet reached stabilization to qualify for permanent financing.
“With our new bridge loan program, we will structure financing for multifamily properties that are expected to meet permanent financing criteria within 18 months of closing,” says Bill Hyman, senior managing director at Centerline.
This is the second of two product launches at Centerline following the November acquisition of the firm by the Hunt Companies. Previously, the firm announced the creation of a bridge lending program for seniors housing properties. James Flynn, managing director, Proprietary Capital, at Centerline, told MHN that Centerline will be introducing more of such proprietary financing products between now and the end of the year.
The bridge loan program will finance new properties in lease-up or distressed management turnarounds where tenancy needs to be rebuilt. On a case by case basis, value-add plays will be considered, said Centerline. Loan amounts under Centerline’s bridge loan program will range from $5 to $25 million. No minimum economic occupancy rate is required.
Hyman comments that in the past few years, much bridge financing has been used to acquire distressed assets, but that there is currently a “growing demand for bridge financing for newly constructed properties in the early stages of leaseup.” The company’s bridge loan program places a preference on properties with current operating income, rather than heavy rehab transactions that will be in transition for two or three years.
“In addition, clients can move from bridge to permanent Centerline financing with no exit fee,” says Hyman.