Case Study: Hope Portfolio – Affordable Housing
Hope Portfolio
CLIENT STORY: 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
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
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 AND INSIGHTS
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