Hope Portfolio
Case Study: Affordable Housing
Property Info
Property Objectives
A lot with a vacant commercial building that’s fallen into disuse will be transformed into new housing for Los Angeles’ homeless community — with about $50 million in Freddie Mac Tax-Exempt Loan (TEL) forward commitments through that will finance Hope at Avalon, as well as two sister projects Hope on Broadway and Hope on Hyde Park. The project will provide permanent supportive housing and transitional units, with three on-site managers, for 294 formerly homeless residents. The properties will be in South/Central LA, about 11 miles south of the central business district. Partners include the Riverside Charitable Corporation, for Broadway and Hyde Park, and the Foundation for Affordable Housing for the Avalon project.
Berkadia Solution
The deal involved multiple principal borrowers, including RBC Community Investments as the Low-Income Housing Tax Credit equity investor. Aedis Real Estate took advantage of Freddie Mac’s unfunded forward TEL program, which holds the spread for 150 days. This provided ample time for the many transaction partners to coordinate and close this very complex transaction.
Client Results
To keep construction cost-effective, levels of prefab steel modular units will be constructed off-site. Amenities in the housing, which is fully compliant with the Americans with Disabilities Act, will include a business center, a game/media room and an activities room. Units will have a patio or balcony, and the supportive housing units will be partly furnished.
Mortgage Banking
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.
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.
RESEARCH, INSIGHTS AND NEWS
Access the latest market-driven insights, research and news from Berkadia.
Berkadia DC Metro Closes Over $800M in Transaction Volume Year-to-Date
Affordability Status Set to Expire for Hundreds of Thousands of Units, Exacerbating Housing Shortage in the U.S.
Hilary Provinse Named a Power Finance Leader by Commercial Observer
The Gates at Marina, Marina, CA | Financed by Berkadia 2024