New York, New York – April 14, 2025 – Berkadia, a distinguished leader in the commercial real estate sector, announced today that the Affordable Housing platform launched an efficient, single source capital solution for construction to permanent financing. Proceeds are used to finance the construction or rehabilitation of Affordable Housing communities with 4% LIHTCs.
Under the leadership of David Leopold, who was recently elevated to EVP – Affordable Housing, Berkadia now offers an expanded suite of Affordable Housing financing solutions. The current interest rate environment has further complicated affordable housing deals, stretching out the gap between the sources and uses of funds in a deal. The Direct Bond Purchase Program can help bridge that gap with attractive benefits including competitive cost of capital, the ability to underwrite forward looking Area Median Income (AMI) at initial loan closing, provide additional leverage, and upsize the loan at conversion. The new product also offers the opportunity to close into a single loan facility on all debt financing sources, rather than as many as three separate financing sources, which is common in other financing structures.
“There is significant demand for construction debt products in the Affordable Housing space,” said Leopold. “The addition of this product is an important part of the expansive capital product offerings that we’ve been building over the past five years and will be a tremendous asset to our clients.”
Berkadia was recognized as the #1 GSE and HUD lender by total volume in 2024 and closed more than 1,100 loans with 198 unique capital sources.
More information on the product is available here.
Berkadia Affordable Housing is a fully integrated financial services platform comprised of mortgage banking, investment sales, and tax credit syndication that delivers comprehensive investment solutions to clients across the country and distinguishes itself by pairing deep technical expertise and a wide array of product offerings with the drive and focus necessary to help clients grow their business.