Berkeley Point and Freddie Mac Partner to Preserve 100+ Affordable Housing Units
June 08, 2016
Bethesda, MD – Berkeley Point Capital LLC recently closed a $20 million financing package using Freddie Mac’s Direct Purchase of Tax-Exempt Loans (TEL) program for the Positano Apartments, an affordable apartment community located in Goleta, California. The financing package was secured on behalf of the Housing Authority of the County of Santa Barbara (HACSB) and closed on May 3, 2016.
The financing also provides $7mm of funds for capital improvements, which are able to be completed without the displacement of any tenant. The TEL program was designed by Freddie Mac to work seamlessly with the 4% LIHTC program providing sponsors, like HACSB, a cost-effective and efficient means to preserve and upgrade the country’s affordable housing stock.
The Berkeley Point Capital team, led by San-Francisco based Director, Matt Naish, originated the loan which actually consisted of two parts. The first was an 18-year fixed-rate, 35-year amortizing loan with 2 years of interest only. The second loan was structured to insure the project satisfied the 50% test, a first for Freddie Mac’s TEL program.
“We are thrilled to be a capital partner with HACSB, bringing innovative financing solutions to an affordable housing market that has been, as well as many others in the state of California, underserved with quality, clean, and safe affordable housing. It’s rewarding to help ensure communities have access to high quality affordable housing,” said Naish.
Bob Havlicek, Executive Director of HACSB and the project sponsor added, “Through the Freddie Mac Tax Exempt Loan (TEL), Berkeley Point Capital delivered an exceptional execution with great terms and the flexibility to address the complexities that arise in affordable housing development.”
“The Freddie Mac TEL execution was a perfect fit for the Positano transaction. It’s highly customizable and in this case enabling a 120 day early index lock with very competitive terms. The result is a compelling alternative to traditional bank balance sheet debt, credit enhancements, and tax exempt bond financing,” said Robert Wrzosek, Executive Managing Director of Berkeley Point Capital’s Affordable Group.
For further information contact:
Business: Corey Debnam Cooper, Berkeley Point Capital, Managing Director
Media: Bonnie Taylor, Berkeley Point Capital, Marketing
about berkeley point capital www.berkpoint.com
Berkeley Point Capital LLC is one of the nation’s leading providers of multifamily capital solutions. The firm boasts a 29+ year history and a servicing portfolio of $52 billion representing in excess of 2,800 loans in 47 states and the District of Columbia. This extensive and diverse national platform allows us to provide our clients with superior execution in every market in the country.
As part of its multifamily and seniors housing and healthcare expertise, the firm offers the full complement of Fannie Mae, Freddie Mac, FHA, Life Company and Conduit products, as well as a proprietary bridge program.