Hunt Capital Partners, a firm focused on financing affordable housing, is negotiating the acquisition of Centerline Holding Co. (OTC: CLNH).
Centerline announced that its board of trustees has authorized negotiations with Hunt.
The move comes after a Hunt affiliate previously acquired 978,275 of the company’s common shares, representing about 41 percent of the shares outstanding. In April, the Centerline board adopted a shareholder rights plan after Otsego Shares, an entity affiliated with Hunt, acquired a large number of shares.
In the latest move, Centerline announced entering into an exclusivity agreement, which calls for the company to negotiate in good faith with Hunt to attempt to reach agreement on a transaction and precludes it from exploring other alternatives until 11:59 p.m. Eastern on May 16.
Hunt indicated an interest in acquiring the remaining shares, according to Centerline, a real estate finance and management company.
Hunt Capital Partners is part of Hunt Cos., a real estate investment and development firm. It is involved in the syndication of low-income housing tax credits (LIHTCs).
Centerline is involved in both affordable and conventional multifamily housing. It also has been a leading sponsor of LIHTC funds. Headquartered in New York City, Centerline has about 221 employees in 14 locations.