Centerline Completes Restructuring; Will Continue LIHTC Origination
Centerline Capital Group, a real estate asset management and financial services firm and subsidiary of Centerline Holding Company, has closed a series of transactions with Island Capital Group LLC and the company’s creditors and preferred shareholders. The transactions, which eliminated approximately $1.6 billion of aggregate liabilities and contingent exposure and provided over $100 million of new equity, restore Centerline to financial stability by restructuring substantially all of its outstanding debt. Centerline also sold its real estate debt fund management and commercial mortgage loan special servicing business to an Island Capital affiliate, C-III Capital Partners LLC, and recapitalized the majority of the outstanding equity interests in the company.
Centerline retains and will continue to operate its core businesses, including: low-income housing tax credit (LIHTC) origination, asset management, and affordable and conventional multifamily lending, principally as an agency or government-sponsored enterprise lender. The company has been one of the largest syndicators of LIHTCs, with $9.3 billion of investor equity under management. It provides asset management services to approximately 1,500 affordable multifamily properties.
Centerline has entered into an advisory agreement with an affiliate of Anubis Advisors, a wholly owned subsidiary of Island Capital. Anubis will provide strategic, restructuring, and general advisory services to Centerline.