Affordable Housing

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.

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.

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.

Fairstead sought to maintain affordable rent structures based on tenant income, ensuring quality housing for families with incomes ranging from extremely low to 60% of the Area Median Income (AMI).  With the loan, they will make significant in-unit improvements and exterior upgrades to modernize the 65-unit affordable housing community including the construction of a new 2,500-square-foot community center to serve as a hub for resident engagement and services. 

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.

Dorado Senior Apartments was initially built and placed in service in 2006 under the Section 42 LIHTC program. All units must be rented to income-qualifying residents earning no more than 30%, 45%, 50%, and 60% of the Area Median Income (AMI) limits, as provided by the California Tax Credit Allocation Committee.  Less than six months from initial acquisition, Berkadia provided $28.5 million permanent tax-exempt acquisition and rehabilitation financing along with a low-income tax credit investment in the amount of $15.25 million.