TODAY’S DEALS: Centerline Arranges $186M for Texas Portfolio Acquisition

Centerline provides financing for a nine-property purchase by Gaia Real Estate; Behringer Harvard and PGGM expand their co-investment relationship; and Houlihan-Parnes brokers a $600,000 non-recourse refinance loan carrying a five-year term.

CenterlineHouston—Gaia Real Estate and partners Menora Mivtachim Insurance and Grand China Fund are the new proud owners of a nine-property portfolio of Class A apartment assets thanks to acquisition financing arranged by Centerline Capital Group. The real estate finance company provided $186 million in floating rate financing for the purchase. All nine properties are located in Houston, specifically within the Medical Center, Northwest and North Houston submarkets.

This latest acquisition brings Gaia’s holdings to over 15,000 residential units under management, with 4,591 units spread through 15 properties in Houston, and 9,428 units spread across 33 properties in the Lone Star State. The nine newly-added communities were all built between 1998 and 2006, and feature amenities like luxury swimming pools, barbecue grilling areas, clubhouses, fitness centers, game rooms, movie theaters and playgrounds.

“The properties are all extremely well located in submarkets with strong demographics that benefit from a solid and diverse employer base,” says Vic Clark, managing director at Centerline. “The Houston economy continues to outperform other major U.S. markets, and the Gaia portfolio is well positioned to capture the growth within the city’s rental supply.  We are pleased that this complex transaction came together so well—it was a trophy deal for Centerline.”

Behringer Harvard, PGGM enter $300M co-investment agreement

Dallas—Behringer Harvard Multifamily REIT I Inc. has expanded its co-investment relationship with Dutch pension fund investment vehicle PGGM via a new $300 million arrangement to invest in multifamily. The new arrangement builds off prior investments in which PGGM committed $300 million for co-investment with Behringer Harvard in three separate $100 million tranches.

“We are excited about this new increase in our PGGM co-investment platform. It represents a significant opportunity to grow the REIT’s portfolio and create additional value for our shareholders,” says Mark Alfieri, president & COO of the Behringer Harvard Multifamily REIT. “We are pleased to extend our relationship with an institutional real estate investor of the highest caliber. We believe that PGGM’s decision to increase, once again, its investment in our U.S. multifamily platform provides further recognition from a highly sophisticated institutional investor of the REIT’s investment strategy.”

As a result of PGGM’s new co-investment with the REIT, the partners plan to invest roughly $1.3 billion into multifamily communities over the next several years. From the start of the relationship in 2007 through September 30, 2013, PGGM has co-invested with Behringer Harvard Multifamily REIT I in 28 properties with a total capitalized cost of approximately $1.6 billion.

Houlihan-Parnes brokers $600,000 refinance loan with five-year term

505 Main StreetNew Rochelle, N.Y.—Ed Graf of Houlihan-Parnes Realtors LLC has arranged the first mortgage re-financing for a three-story walk-up apartment building containing four residential units and two commercial tenants located at 505 Main Street in New Rochelle, N.Y.

The non-recourse loan of $600,000 was placed for a term of five years, with a five-year option term.  The initial term is fixed at 4.25 percent with a 30 year amortization schedule.  The prepayment penalty is 5 percent for the first year with a declining 1 percent per year, thereafter.


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