Centerline Capital Group Refinances a Multifamily Property in Louisville, Kentucky

– Total funding equals $6.15 Million-

New York, NY – October 23, 2012 – Centerline Capital Group (“Centerline”), a provider of real estate financial and asset management services for affordable and conventional multifamily housing, and a subsidiary of Centerline Holding Company (OTC: CLNH), announced today it has provided a $6.15 million Fannie Mae DUS loan to refinance Eastridge Apartments, a multifamily facility located in Louisville, Kentucky.

The proceeds of the facility will be used to repay an existing CMBS loan and cover all costs associated with the transaction, including a prepayment penalty.  The loan also enabled the borrower to significantly reduce the loan interest rate. The borrower is
a local commercial real estate owner operator. 

Eastridge Apartments is in Jefferson County in north central Kentucky, located approximately 15 miles northeast of the Louisville central business district and 17 miles northeast of the Louisville International Airport.  The property’s location is within 1.5 miles of Interstate 265 (Gene Snyder Freeway) which provides direct access to downtown Louisville.

Constructed in 1972 and renovated in 2008, Eastridge Apartments complex includes eighteen two-story brick apartment buildings containing 188 units, a clubhouse and a maintenance/pool house building.  The property includes a small rear parking lot with approximately 40 usable spaces. 

“The Property has been steadily improving in terms of occupancy and rent growth over the past 24 months,” noted Joseph Markech, Vice President in the Mortgage Banking Division at Centerline Capital Group. “Physical occupancy has improved from 90 percent one year ago to the current 97 percent plus occupancy rate.  In addition, the sponsor has owned and operated the property for 10 years and it is performing at or above comparable properties in the market.  We were pleased to be a part of this transaction.”

The unit mix consists of 48 one bedroom/one bath units, 64 two bedroom/one bathroom apartments, 28 three bedroom/one bathroom units and 48 two bedroom/one bath townhome units. Property amenities include a clubhouse, grilling area, playground, swimming pool and a central laundry room.

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

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About Centerline Capital Group
Centerline Capital Group, a subsidiary of Centerline Holding Company (OTC: CLNH), provides real estate financing and asset management services focused on affordable and conventional multifamily housing.   We offer a range of both debt financing and equity investment products, as well as asset management services to developers, owners, and investors.  An industry leader, Centerline is structured to originate, underwrite, service, manage, refinance or sell through all phases of an asset’s life cycle.  A leading sponsor of Low-Income Housing Tax Credit (LIHTC) funds, Centerline has raised more than $10 billion in equity across 137 funds, and invested in over 1,600 assets spanning 47 states. The firm’s multifamily lending platform services more than $11.5 billion in loans. Founded in 1972, Centerline is headquartered in New York City, with 246 employees in ten offices throughout the United States.   A strategic partner of Island Capital, Centerline is organized around four business units: Affordable Housing Equity, Affordable Housing Debt, Mortgage Banking and Asset Management.  To learn more about Centerline, visit www.centerline.com.

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Source: Centerline Holding Company (CharterMac) via Thomson Reuters ONE

Walker & Dunlop Provides $70.2 Million in Fannie Mae Financing for Portfolio …

/PRNewswire/ — Walker Dunlop, Inc. (NYSE: WD) announced today that it recently provided $70,208,000 in Fannie Mae financing to Reinhold Residential, for a portfolio of historic properties converted to Class A multifamily residential buildings.

The portfolio consists of seven garden-style properties with over 628 units located in Philadelphia, Pittsburgh and West Chester, PA. All of the choice refinance transactions were structured with 10-year terms with 5-years interest only, followed by 25- or 30-year amortization periods. The portfolio was closed as a bulk delivery using Fannie Mae’s MATS ERL™ execution. This product allows for an Early Rate Lock (ERL) option for use with Multiple Asset Transactions (MATS) that enables borrowers to lock in attractive interest rates and competitive financing terms. By utilizing this program, Walker Dunlop was able to structure the transactions to allow the borrower to use funds from closing to facilitate capital upgrades for the properties over the next five years.

The borrower, Jeff Reinhold, commented, “It was a real pleasure working with Jay Thomas and his team at Walker Dunlop and Don Pettit and his team at Carey, Kramer, Pettit, Panichelli Associates on the refinance of our multifamily portfolio. Throughout the entire process, Jay, Don, and their team ensured and executed successful and timely transactions. The portfolio refinance closed within our requested timeframe, and the teams’ professionalism and experience made the entire process as smooth as possible. We look forward to working with Walker Dunlop and CKPP on future transactions.”

Chocolate Works Apartments, Shadyside Commons Apartments, Sharples Works Apartments, The Touraine Apartments, Trinity Row Apartments, Waterfront I Apartments, and Waterfront II Apartments are all historically significant properties and included on the National Registry of Historic Buildings. With the exception of Trinity Row Apartments (row houses) and The Touraine Apartments (once a residential hotel), the properties were once commercial or industrial buildings that were converted into apartments nearly 20 years ago. The refinance upgrades them to luxury living space, each offering a unique architectural style and top-of-the-line services and amenities. The combined average occupancy of the properties was over 99 percent at closing. 

Walker Dunlop Senior Vice President, Multifamily Finance, Jay Thomas, (469/248-1250, jthomas@walkerdunlop.com) led the Walker Dunlop team. Don Pettit, Carey, Kramer, Pettit, Panichelli Associates, originated the loan.

About Walker Dunlop Through its subsidiary Walker Dunlop, LLC, Walker Dunlop, Inc. (NYSE: WD) is one of the leading commercial real estate finance companies in the United States, with a primary focus on multifamily lending. As a Fannie Mae DUS®, Freddie Mac Program Plus® and MAP- and LEAN-approved FHA lender, the Multifamily and FHA Finance groups are focused on lending to property owners, investors, and developers of multifamily properties across the country. Walker Dunlop’s proprietary Interim Loan Program provides financing for multifamily properties that do not currently qualify for permanent financing. The Capital Markets group specializes in financing commercial real estate for owners and investors across the United States, securing capital from large institutions such as life insurance companies, commercial banks, CMBS lenders, pension funds, and specialty finance companies. The Principal Investments group provides institutional advisory, asset management, and investment management services with respect to debt, structured debt and equity.

SOURCE Walker Dunlop, Inc.

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Fannie Mae Makes Homepath Properties Offer Process Simpler


(Source: Fannie Mae) – Fannie Mae announced that it has made several enhancements designed to make the offer process on its HomePath® properties easier and more efficient for homebuyers and real estate professionals. Beginning this week, real estate professionals may access Fannie Mae offer documents alongside the local sales contract in approved forms libraries available through their Multiple Listing Service (MLS) and real estate association.   Real estate professionals and homebuyers may now electronically sign offer documents for HomePath properties.

“These enhancements will make Fannie Mae’s REO sales process more streamlined and user-friendly for buyers and agents,” said Jay Ryan, vice president for REO dispositions, Fannie Mae. “Our goal is to sell as many HomePath properties as we can to owner occupants who will help stabilize their community.  Instead of filling out forms by hand and scanning them in, agents and buyers have the option to access and complete the documents in a forms library, sign them electronically and submit the offer through HomePath.com in a much more efficient process.”

These expanded HomePath capabilities will help ensure that real estate professionals avoid errors made when filling out forms manually and have access to the latest Fannie Mae forms for their jurisdiction.  Fannie Mae has worked with Instanet and Zipform to add Fannie Mae forms to their forms libraries. Fannie Mae expects to work with additional vendors to provide similar services to more real estate professionals across the country.

In February, Fannie Mae announced that all offers on HomePath properties come through its Online Offers system.  In the first half of 2012, the company sold 100,745 HomePath properties.  From the beginning of 2011 through the second quarter of 2012, Fannie Mae reduced its inventory of properties by 33%.

Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America’s secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.

Source: Fannie Mae


Freddie Mac Posts October Housing Market Outlook

Freddie Mac released its U.S. Economic and Housing Market Outlook for October today, showing the expansion of the Federal Reserve’s Maturity Extension Program is sparking a further pickup in housing activity.

Accordingly, Freddie Mac is revisiting its economic and housing market projections for the remainder of this year and for 2013.

“The housing sector’s performance since the Great Recession has been unlike any other recovery over the last 65 years,” said Frank Nothaft, vice president and chief economist at Freddie Mac. “However, now we’re seeing housing resuming its traditional role of leading the recovery charge and once again being the bright spot in the economy. With QE3 in motion we should see even more pick-up in housing activity thereby providing greater benefits to the overall economy and consumers looking to refinance or purchase a home.”

Outlook Highlights

— Housing contributed 0.3 percentage points to the first-half 2012 real GDP growth of 1.7 percent (annualized) and will likely add a similar boost during the second half of the year after being a net drag on GDP from 2006-2010.

— Projecting 7 million borrowers refinancing in 2012 resulting in an aggregate of $15 billion in mortgage payment savings over the first 12 months after the refinance, a substantial infusion of funds to help strengthen savings and consumption spending by owners.

— Expecting single-family origination volume to come in close to $2 trillion in 2012, about a 30-percent rise from 2011, and then drop by 15 to 20 percent in 2013 as refinance ‘burnout’ and somewhat higher mortgage rates during the latter half of next year lead to less refinance activity.

Anticipate a favorable interest-rate environment to remain through the end of this year and into next with the 30-year fixed-rate mortgage averaging around 3.50 percent.

Watch a short preview video below. Freddie Mac compiles data on major economic and housing and mortgage market indicators and offers forecasts based on those indicators.

Get the latest information from Freddie Mac’s Office of the Chief Economist on Twitter:@FreddieMac.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets.

Preview video:

Lehigh Valley Home Sales Up 8 Percent in September

The Lehigh Valley continues to see a boost in the housing market with year-to-date sales of 4,329 up 17.3 percent over 2011 year-to-date sales of 3,690.

Year-to-date pending sales, which indicate transactions in process that have not yet closed, reached 5,152, up 40.4 percent from last year at the same time when pending sales were 3,670, according to the Lehigh Valley Association of Realtors (LVAR).

“Our data over the last 15 months shows that home sales and pending home sales have consistently increased over the same time the previous year,” says Ryan Conrad, CEO of LVAR. “The positive trend in the housing market is great news for our local economy. Research from the National Association of REALTORS® has shown that on the average, for every 1,000 homes sold, 500 jobs are created.”

September 2012 to 2011 comparisons reinforce the positive trends that have been evident for more than a year:

  • The number of sales has increased 8.6 percent, with 468 sales reported in September 2012 as compared to 431 during the same month last year.
  • The average sales price of $198,000 indicates an increase of 2.1 percent from $194,000 recorded in September 2011.

“Our members are finding that many renters who are able to take on the responsibilities of home ownership are choosing to buy a home,” says Andrea Decker, President of LVAR. “Historically low interest rates compared with the stable payments provided by a fixed-rate mortgage are attracting renters who are frustrated by increasing rental fees and decreasing availability in the rental market,” she adds.

September 2012 homes sales were down from August 2012 and is the usual trend for the time of year, however, the 17.3 percent increase in year-to date sales is a strong indicator that the housing market is on the road to recovery.

Monthly statistics are based on figures generated by the Lehigh Valley Association of REALTORS® Multiple Listing Service. Average sales and median prices fluctuate monthly depending on the number of sales at the high or low end of the price range. The year-to-date numbers generally remain more constant.

 

Lehigh Valley Association of REALTORS® is a not-for-profit trade association that provides professional development and training resources, competitive market information, legislative advocacy, a peer review and mediation process for members, and a dispute resolution service for consumers. LVAR owns and operates the Lehigh Valley Multiple Listing Service (MLS), the Lehigh Valley Real Estate Academy, and is publisher of Lehigh Valley Real Estate Weekly. Members of LVAR pledge to uphold the National Association of REALTORS® code of ethics, a criterion of excellence and professional conduct.  For more information, visit: www.LVAR.org.

Freddie Mac Says QE3 Boosts Housing Activity

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  • Realtors Property Resource®: What It Is, How You Benefit

    Chances are, you have heard of the Realtors Property Resource® (RPR) by now. But what is it, exactly, and how can it benefit you?

    More than four years ago, the idea of a nationwide online database of comprehensive, high-value property information was conceived from an idea that came out of NAR’s Second Century Ventures (SCV) initiative. A plan was developed and approved by National Association of REALTORS® leadership to provide this as a benefit to members, and a very knowledgeable team was organized to execute the initiative.

    During the past couple of years, RPR has partnered with about 440 multiple listing services throughout the United States. With those partnerships, about two-thirds of all REALTORS® are able to access RPR as of mid-October, 2012.

    Even with that high level of access, as a member benefit, its part of RPR’s core mission to deliver this technology to all of NAR’s 1,000,000 REALTORS®. This is important because it allows “all members to take advantage of RPR’s high value tools, features and reporting capabilities,” says Dale Ross, CEO of RPR. To that end, RPR has announced that they are making the system available to all REALTORS® on Nov. 1, 2012.

    “The RPR team is very excited about the opportunity to bring RPR to markets which have been waiting for access to the system,” adds Jeff Young, RPR senior vice president of operations. “We’ve been telling members for months that the wait is almost over.”

    So what can RPR do for REALTORS®? Here are just three advantages it can provide:

    1. Generate data-rich reports: RPR collects loads of data on individual properties and their surrounding communities. You can use the system to generate custom reports that can include as much of this information as your clients want. “I have never heard of any buyers and sellers who do not like the reports,” Ross says.

    2. Connect with younger consumers: Homebuyers and sellers from generations X and Y are doing the majority of their property researching online, often before they contact a real estate practitioner. When they do reach out to agents, these consumers expect them to be able to immediately provide even more valuable information on certain homes. With its extensive yet user-friendly database, RPR allows REALTORS® to do just that. “REALTORS® who use RPR will certainly have more information on properties than consumers who do research online,” Ross says.

    3. Provide insight into property values: With the fluctuating housing market during the past few years, it is often difficult to get a handle on a home’s value at any given time. But with RPR’s Realtor Valuation Model® (RVM), users of this system will have an authoritative source with which to provide information about property values using tax information, sale history, and comparables and other data sets. “RPR’s RVM offers best-in-class automated valuations which REALTORS® can refine with their local market knowledge to make it even more accurate,” Ross says.

    Want to learn more about how RPR can benefit your business? Go to http://blog.narrpr.com/national-launch. Also, be sure to register for a free REALTOR® Magazine webinar, “A Look Ahead: RPR’s Launch to All REALTORS®,” taking place this Thursday, Oct. 25, 2012.

    US futures fall after tech giants rattle market

    NEW YORK (AP) — Stock futures are ending the week on a down note after a pair of major tech companies rattled markets with subpar performances during the most recent quarter.

    Dow Jones industrial futures are down 25 points to 13,462. The broader SP futures have given up 3.5 points to 1,448. Nasdaq futures are down 9.25 points to 2,723.50.

    Google surprised investors twice Thursday, releasing earnings hours before they were expected, and putting up awful revenue numbers. After the worst sell-off in shares since September 2008, Google shares were flat in premarket trading Friday.

    Microsoft is down 2 percent before the market opens after it said that profit tumbled more than 20 percent.

    The National Association of Realtors posts existing home sales figures at 10 a.m. Eastern. Economists expect a slight decline.

    Walker & Dunlop Provides $70.2 Million in Fannie Mae Financing for Portfolio of Historic Properties Converted to Class …

    BETHESDA, Md., Oct. 23, 2012 /PRNewswire/ — Walker Dunlop, Inc. (WD) announced today that it recently provided $70,208,000 in Fannie Mae financing to Reinhold Residential, for a portfolio of historic properties converted to Class A multifamily residential buildings.

    The portfolio consists of seven garden-style properties with over 628 units located in Philadelphia, Pittsburgh and West Chester, PA. All of the choice refinance transactions were structured with 10-year terms with 5-years interest only, followed by 25- or 30-year amortization periods. The portfolio was closed as a bulk delivery using Fannie Mae’s MATS ERL™ execution. This product allows for an Early Rate Lock (ERL) option for use with Multiple Asset Transactions (MATS) that enables borrowers to lock in attractive interest rates and competitive financing terms. By utilizing this program, Walker Dunlop was able to structure the transactions to allow the borrower to use funds from closing to facilitate capital upgrades for the properties over the next five years.

    The borrower, Jeff Reinhold, commented, “It was a real pleasure working with Jay Thomas and his team at Walker Dunlop and Don Pettit and his team at Carey, Kramer, Pettit, Panichelli Associates on the refinance of our multifamily portfolio. Throughout the entire process, Jay, Don, and their team ensured and executed successful and timely transactions. The portfolio refinance closed within our requested timeframe, and the teams’ professionalism and experience made the entire process as smooth as possible. We look forward to working with Walker Dunlop and CKPP on future transactions.”

    Chocolate Works Apartments, Shadyside Commons Apartments, Sharples Works Apartments, The Touraine Apartments, Trinity Row Apartments, Waterfront I Apartments, and Waterfront II Apartments are all historically significant properties and included on the National Registry of Historic Buildings. With the exception of Trinity Row Apartments (row houses) and The Touraine Apartments (once a residential hotel), the properties were once commercial or industrial buildings that were converted into apartments nearly 20 years ago. The refinance upgrades them to luxury living space, each offering a unique architectural style and top-of-the-line services and amenities. The combined average occupancy of the properties was over 99 percent at closing. 

    Walker Dunlop Senior Vice President, Multifamily Finance, Jay Thomas, (469/248-1250, jthomas@walkerdunlop.com) led the Walker Dunlop team. Don Pettit, Carey, Kramer, Pettit, Panichelli Associates, originated the loan.

    About Walker Dunlop
    Through its subsidiary Walker Dunlop, LLC, Walker Dunlop, Inc. (WD) is one of the leading commercial real estate finance companies in the United States, with a primary focus on multifamily lending. As a Fannie Mae DUS®, Freddie Mac Program Plus® and MAP- and LEAN-approved FHA lender, the Multifamily and FHA Finance groups are focused on lending to property owners, investors, and developers of multifamily properties across the country. Walker Dunlop’s proprietary Interim Loan Program provides financing for multifamily properties that do not currently qualify for permanent financing. The Capital Markets group specializes in financing commercial real estate for owners and investors across the United States, securing capital from large institutions such as life insurance companies, commercial banks, CMBS lenders, pension funds, and specialty finance companies. The Principal Investments group provides institutional advisory, asset management, and investment management services with respect to debt, structured debt and equity.

    Freddie Mac: QE3 Is Working, We’re Raising Our Housing Market Outlook

    imageFreddie Mac has announced today (via Seeking Alpha) that thanks to QE3, it is boosting its outlook for the US housing market.

    Here’s the full announcement below the dotted line

    The Federal Reserve took an important step when it announced an expansion of its Maturity Extension Program on September 13. Referred to in the media as “QE3” — the third round of Quantitative Easing – the Federal Reserve stated that it would increase its purchases of agency mortgage-backed securities (MBS) by $40 billion per month and continue the ‘term extension’ of its portfolio; taken together, its holdings of longer-term securities will increase by about $85 billion per month through year-end. Its stated goal is to encourage lower long-term interest rates, especially on fixed-rate mortgages, and spark a further pick-up in housing activity. With QE3 in motion we have revisited our economic and housing market projections for the remainder of this year and for 2013. Moreover, the increased housing demand stimulated by QE3 may partly offset (albeit by a small amount) the substantial reduction in 2013 aggregate demand that would be expected if the so-called “fiscal cliff” occurs.

    The housing sector’s performance since the Great Recession of 2008-09 has been unlike any other economic recovery over the last 65 years. Typically, the housing industry leads the recovery charge helping to strengthen the early stages of the macroeconomic expansion. Yet housing has been the laggard during the current recovery. In fact, residential fixed investment (RFI) (the component of gross domestic product (GDP) that includes expenditures on new housing construction, additions and alterations to the existing housing stock, and broker commissions on property sales) was a net drag on GDP growth during 2006-2010 and added less than one-tenth of a percentage point to GDP growth in 2011. This year has been different; RFI added 0.3 percentage points to the first-half 2012 real GDP growth of 1.7 percent (annualized) and will likely add a similar boost during the
    second half of the year.

    The gradual turnaround in housing activity reflects, in part, the Federal Reserve’s accommodative monetary policy. With mortgage rates at their lowest levels since at least the 1940s, housing demand has begun to improve. New housing starts were up 25 percent and existing home sales gained 8 percent over the first eight months of 2012 compared with the same period last year. Property value indexes for the U.S. have also turned up, with the FHFA purchase- only house price index up 3.8 percent over the 12 months through July and the National Council of Real Estate Investment Fiduciaries’ value index for apartment buildings up 7.6 percent over the four quarters through mid- 2012.
    Low mortgage rates have also spiked a refinance boom, with roughly three-fourths of all loan applications this year for refinance. For loans funded by Freddie Mac during the second quarter, the average borrower that refinanced lowered their mortgage rate by about 1.5 percentage points. For an average $200,000 loan, that translates into a savings in monthly payments of about $2,100 over the next year. Our new projection for the market as a whole for 2012 has about 7 million borrowers refinancing; if each experiences this average payment reduction then that will result in an aggregate of $15 billion in mortgage payment savings over the first 12 months after the refinance, a substantial infusion of funds to help strengthen savings and consumption spending by owners.
    We have boosted our projection of single-family mortgage originations for the remainder of this year and for 2013 for two main reasons. First, the September release of the 2011 Home Mortgage Disclosure Act (HMDA) data (which includes purchase-money, refinance, and home-improvement loans), has led to an upward revision in our estimate of 2011 origination volume. Lenders covered under HMDA reported $1.43 trillion in originations for 2011; assuming HMDA covered about 95 percent of all volume in 2011, this equates to about $1.50 trillion in originations. The larger volume for 2011 also increased our estimate for 2012 because the latter is based, in part, on our estimates of purchase-money and refinance growth between the two years.

    Second, the expectation of an extended period of low mortgage rates ushered in by QE3 has resulted in our boost to the new purchase-money and refinance volume during the second half of 2012 and into 2013. We expect single-family origination volume to come in close to $2 trillion in 2012, about a 30-percent rise from 2011, and then drop by 15 to 20 percent in 2013 as refinance ‘burnout’ and somewhat higher mortgage rates during the latter half of next year lead to less refinance activity.

    The Federal Reserve’s QE3 initiative will take on even more importance if the assortment of temporary tax cuts are allowed to expire at year-end and government spending levels are reduced with the start of 2013. Popularly known as the “fiscal cliff,” these items include (but are not limited to) the expiration of the 2 percentage-point payroll-tax cut and Bush-era tax-rate reductions, and the spending cuts related to long-term unemployment benefits and automatic reductions required under the Budget Control Act of 2011.

    The Congressional Budget Office has estimated that if all the temporary tax cuts expire and government spending levels are reduced, that 2013 GDP growth would be reduced by at least 2.2 percentage points from what it otherwise would have been, possible pushing the U.S into recession with unemployment rising to 9 percent. Moody’s Analytics also concluded the economy would be much weaker in 2013 in such a scenario, with growth estimated to be 2.8 percentage points slower and unemployment rising to 9.2 percent.1 With QE3 already in place and helping to bolster housing demand in the near term, the economic effects of experiencing the “fiscal cliff” will be somewhat less than they otherwise would be.