Island Capital Group Buys Centerline’s Servicing Unit

New York-based Island Capital Group has reportedly acquired Centerline Holding Co.'s commercial mortgage servicing business, committing $100 million in new equity and assuming $180 million of Centerline's debt.

According to a Wall Street Journal report, Island Capital, which had been working since September to recapitalize Centerline's commercial mortgage special servicing business, will have full ownership of Centerline's servicing and debt-fund-management businesses, as well as a 40% interest in its other lines of business, which include agency lending and affordable housing.

A BusinessWeek report from Friday notes that, as of the end of September 2009, Centerline was the special servicer on 81 commercial mortgage-backed securities transactions totaling $109.7 billion.

SOURCES: Wall Street Journal, BusinessWeek

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