Case Study: Hope Portfolio – Affordable Housing

Hope Portfolio
CLIENT STORY: Affordable Housing 

hope portfolio case study affordable housing

Hope at Avalon, Hope on Broadway, Hope on Hyde Park 

Property Info

Property Type: Affordable Housing, Permanent Supportive Housing 
Date Closed: 7/7/2023
City, State: Los Angeles, California
Lender: Freddie Mac and Berkadia
Loan Amount: $50M
Purpose: Refinance
Units: 294
LTV: 90%

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

AFFORDABLE HOUSING

Managing Director
503.261.3668
fred.dockweiler@berkadia.com

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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