ElevenEleven

Case Study: Affordable Housing

Property Info

Property Type: Affordable Housing
City, State: San Francsico, CA
Lender: HUD
Loan Amount: $142 million
Transaction Type: Mortgage Banking
Purpose: Construction Financing

Property Objectives

Martin Building Company, a San Francisco-based design and development firm, sought to create a new mixed-use residential development in San Francisco’s Lower Nob Hill neighborhood.

Berkadia Solution

Berkadia, in partnership with HUD, provided $142 million of construction-permanent financing through the HUD 221(d)(4) program.  Berkadia’s Affordable Housing team, alongside the FHA/HUD team, partnered with Martin Building Company and HUD to navigate the very complex underwriting and closing landscape to make this project a reality.  By bifurcating the project into two separate entities, the project qualifies for various tax credits and state and federal funds.

Client Results

ElevenEleven will feature 303 units, including 101 deeply affordable units and a 4,000-square-foot childcare center. The site currently houses two structures: a former auto repair shop with a public garage at 1101 Sutter Street and a dilapidated two-story building at 1111 Sutter Street. The three-level concrete auto-repair building at the corner of Sutter Street and Larkin Street will be rehabilitated and maintained as a public parking garage. On the west side, the aging structure will be demolished to make way for a new 22-story high-rise tower to house the new residential units.

The 22-story, 235-foot tower will offer contemporary rental apartments above a vibrant mix of street-level amenities, including the main resident lobby and lounge, well-appointed common spaces, retail, and a childcare center.

Mortgage Banking

Jay Abeywardena

Managing Director
310.209.3244
[email protected]

Berkadia Affordable Housing

Partnering with Berkadia Affordable Housing comes with our promise to provide clear and steady guidance from start to finish. Whether you’re looking to preserve and enhance existing affordable homes or create beautiful new properties, we look forward to partnering with you on this vital mission.

Learn more about Berkadia Affordable Housing.

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Client Stories

Sunburst
Apartments

Berkadia is dedicated to leading the digital transformation of commercial real estate with investments in technology like Esusu, a rent-reporting platform created to build tenants’ credit. Multifamily property owners who implement Esusu can decrease evictions and vacancies and maximize NOI. As partners, Berkadia borrowers may receive closing cost credits and discounted rates.

551 W PRENTICE AVE

As Freddie Mac’s #1 Optigo® Lender and Fannie Mae’s #2 DUS Producer, Berkadia Small Loans is skilled in navigating GSE programs to find the best loan executions for our clients. Though the lending landscape continues to evolve, agency small loan executions remain one of the best options for investors who recognize the value of optionality and take advantage of rate locking.

Credit facility executions allow borrowers to arrange flexible financing terms for a portfolio of properties on a cross-collateralized and cross-defaulted basis, with property addition, property release, property substitution, and borrow-up capabilities for all asset classes. Kairos Investment Management Company and Berkadia secured a $175 million credit facility backed by Fannie Mae.

We recently partnered with Freddie Mac and Spira Equity Partners to help rehabilitate and preserve 392 units of affordable housing for the residents of Brittany Bay Apartments. Brittany Bay has the most units of any community in a High Opportunity Area that Freddie Mac has financed.

The Fairfield Affordable Housing Preservation Fund is focused on acquiring rent and income-regulated affordable housing assets in markets throughout the U.S. The Fund is Fairfield’s first affordable housing-focused investment vehicle open to third party investors and will leverage Fairfield’s 20-year history of investing and managing LIHTC multifamily assets. 

A lot with a vacant commercial building that’s fallen into disuse has been transformed into new housing for Los Angeles’ homeless community by development company and Berkadia partner, Aedis Real Estate Group. Berkadia originated $50 million in Freddie Mac’s TEL forward commitments that will finance Hope at Avalon, as well as two sister projects Hope on Broadway and Hope on Hyde Park.

JASA is a longtime Berkadia client and non-profit organization committed to the safety, health, and well-being of seniors. Recently, Berkadia financed $46M+ in loans for two JASA properties under the HUD 223(f) program. In addition to repairs and upgrades, the higher leveraged, low interest rate loans enabled JASA to allocate funds to programs benefiting their residents.

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