Lago de Plata Apartments is an affordable community that consists of 150 rental units housed in 14 garden style buildings that were originally built in 1970, but substantially renovated in 2003-2004 with the aid of a HUD 221d4 new construction/rehab loan. The subject has a 20 year HAP contract that was renewed in 2012.
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The property has historically benefited the City of Corsicana by providing much needed affordable housing in the community. Located in Navarro County, Corsicana is situated 55 miles southwest of downtown Dallas.
The borrower is single asset entity or 501c3 non-profit corporation organized under the laws of the state of Texas. Proceeds from the loan will be used for repairs and to replace reserve escrows.
"The 223a7 program was perfect for this property as it allows for existing HUD mortgages to be refinanced to the original loan balance with reduced documentation and quicker processing times to lower the interest rate," explained Bryan Cullen, director at Centerline Capital Group. "In this case, the interest rate was dropped from 6.00% to 3.10%. In addition, the loan is fully amortizing over 37 years as we were able to add 10 years to the initial loan maturity."
"We have completed three loans through Centerline’s small loan program, one through standard DUS and now a HUD loan," commented Jerry Jackson, officer of the non-profit entity. "We have been pleased in each transaction with the Centerline teams and look forward to working with them again in the future."
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By GlobalData"The sponsors of this deal are repeat Centerline customers with solid real estate experience and well performing multifamily and commercial real estate portfolio," added Cullen. "These factors, combined with deal’s solid real estate fundamentals, and the borrower’s relationship with Centerline made this a solid deal for Centerline."
The unit mix includes 30 one-bedroom one-bathroom apartments, 30 two-bedroom two-bathroom units, 22 two-bedroom one-bathroom townhomes, 60 three-bedroom one-bathroom apartments, and eight four-bedroom one-bathroom townhomes.
Property amenities include a swimming pool, gazebo, community center with kitchen, laundry room, playground and learning center.
The Centerline team that closed the loan included Bryan Cullen and Sandra Rothe.
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, bridge and CMBS lender, and source for other forms of alternative capital.
