Case Study: Kairos Credit Facility – Affordable Housing

Kairos Credit Facilty
CLIENT STORY: Affordable Housing

Property Info

Property Type: Affordable Housing
Date Closed: 8/15/2022
City, State: Multiple Locations
Lender: Fannie Mae and Berkadia
Loan Amount: $175M

Property Objectives

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.

Berkadia Solution

Kairos Investment Management Company and Berkadia secured a $175 million credit facility backed by Fannie Mae. The 20-year facility term enables Kairos to close different loan tranches with varying maturities to better manage long-term refinancing risk and future capital events. The benefits of a credit facility include:

  • Flexibility: Facility executions allow ultimate flexibility in portfolio management with opportunistic sale or release of properties and an easy addition of properties
  • Certainty: Pre-negotiated loan documents provide for certainty of execution and fast closings for facility expansions as well as allow borrowers to retain favorable interest rates with property substitutions
  • Credibility: Having the facility in place gives Kairos very low cost of capital, flexible terms, and significant credibility with potential sellers who will know that financing is readily available, allowing them ability to move quickly and secure new acquisition opportunities
  • Efficiency: Recognize portfolio improvements efficiently with first lien borrow-ups

Client Results

By combining fixed and floating rate tranches, the facility allows for greater flexibility when it comes to interest rate management, as well as the ability to add or remove different assets to the collateral pool without incurring prepayment penalties. 

Mortgage Banking


Senior Managing Director 

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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