Centerline Capital Arranges Loans for Three Multifamily Properties in Oregon

Centerline Capital provides $16.3 million in financing to properties in Eugene and Portland, Ore.; and EverBank supplies a $4.1 million construction takeout loan.

New York—Centerline Capital Group announced it has arranged Fannie Mae DUS loans for three multifamily properties in Oregon. The properties are located in Eugene and Portland, Ore., and the total Centerline investment equals $16.3 million.

“What’s unique about these loans is that we were able to leverage the flexibility of the Fannie Mae DUS loan program to truly add value for our clients,” notes Matthew Olrich, vice president, Centerline. “Through the program, we provided full-term interest only loans on two deals, and addressed another’s clients financing objectives with a small supplemental loan to free up trapped equity.”

The properties include:

-Broadway Center Apartments. Centerline provided a $4.3 million Freddie Mac CME loan to refinance an existing Freddie Mac loan in the Centerline portfolio for Broadway Center Apartments. Located in Eugene, Ore., Broadway Center is a 107-unit garden-apartment community that was built in 1978. The property is comprised of four, three-story buildings and one maintenance building. The finance facility is a 10-year fixed rate loan with full-term interest only. Common-area amenities include an on-site laundry room and leasing office. Parking is provided via 107 parking spaces which consists of 64 open spaces and 43 carports.

-Pacific Crest Apartments. Located in Portland, Ore., Pacific Crest Apartments is a 156-unit garden-apartment community built in 1969 and 1974. Centerline provided a Fannie Mae second mortgage in the amount of $980,000.  The loan is cash out supplemental facility; proceeds will be used to upgrade the property. Pacific Crest Apartments is comprised of 14 two-story buildings. Property amenities include a leasing office, fitness center and laundry room. The property offers 214 parking spaces, including 168 open spaces, 26 carports and 20 garages.

-Twin Creeks Apartments. Twin Creeks Apartments is a 220-unit garden-apartment community that was built in 1996, 1998 and 2000.  Located in Portland, Ore., Centerline provided an $11 million Freddie Mac loan to refinance the property. A low leverage transaction, the facility is a 10-year fixed rate loan with full-term interest only. The facility is comprised of 15 three-story residential buildings and a leasing office/clubhouse. Common area amenities include two outdoor pools, a child pool, two spas and a clubhouse that includes a fitness room, a laundry room, leasing office, playground and a basketball court.

“The borrowing entities and principals have all been active in investing in multifamily properties in the local area,” says Olrich. “The properties are all in good condition and well managed. The strength of the sponsors and underlying real estate fundamentals made this a good deal for Centerline. We were pleased that the loan structures came together so well.”

The Mortgage Banking Group at Centerline provides mortgage financing for conventional multifamily properties throughout U.S. Centerline is a Fannie Mae DUS lender, Freddie Mac seller-servicer, FHA-approved mortgage provider, bridge and CMBS lender and source for other forms of alternative capital.

EverBank arranges $4.1M construction takeout loan  

EverBank HSIMilwaukee—EverBank Commercial Real Estate recently funded a multifamily transaction with HSI Residential Annex LLC.

HSI Residential Annex, received a $4.1 million non-recourse construction take-out loan for a 40-unit Class A multifamily property in Milwaukee with a 67 percent loan-to-value ratio on a 10/30 structure.

The property is called “The Annex at Enclave” and is a single four story building, which was completed in June 2013. The Annex is now 100 percent leased, with the majority of residents moving in August. The building is comprised of all one bedroom units with stainless steel appliances, stackable washer/dryers, balcony areas, wood laminate flooring and granite countertops.

Adjacent to the Annex, a sister facility also under HSI Residential Annex, contains a workout facility, game and party room, outdoor pool and on-site management and leasing office, all of which are accessible to residents of the Annex.