Centerline Capital Group refinances multifamily property in Beaverton, Oregon
Centerline Capital Group, a provider of real estate financial and asset management services for affordable and conventional multifamily housing, has provided a USD3.73m Fannie Mae DUS loan to refinance Farmington Townhomes, a multifamily property located in Beaverton, Oregon.
Farmington Townhomes is a 62-unit property that was originally built in 1974 and comprises 10, two-story townhome style buildings with brick and wood siding and pitched roofs. The borrower is a single-asset LLC who made a number of significant repairs, totalling USD1.2m (USD17,600/unit) upon purchase.
"Farmington Townhomes was purchased in by its current owner January 2012 for just over USD2.7m," says Bryan Cullen, director at Centerline Capital Group. "The property owner implemented a number of effective renovations and management improvements and increased the property value to over USD5m in just one-and-a-half years."
The repairs made to the property include new roofs, windows, repairing and repainting the exterior of the facility, parking/paving, unit rehabs, and landscaping upgrades. The loan Centerline put into place is a cash out refinance of the existing debt of USD2.3m. The net proceeds will be used for future acquisitions. The loan term is 10 years, with a 30-year amortisation schedule.
"The borrower is an experienced multifamily property owner and manager with 24 multifamily properties that they successfully manage in Oregon, California and Washington," says Cullen. "In addition, the borrower is a repeat Centerline customer that currently holds 17 loans on 12 properties with Centerline. These factors, combined with the deal's solid real estate fundamentals, made this a good deal for Centerline."
Property amenities include an on-site leasing office and two laundry facilities. Unit amenities include a standard, fully-equipped kitchen, full size washer and dryer in select units, balcony or patio with a small private storage access. Parking spaces are provided.