A joint venture of Slate Property Group and Fundamental Advisors has completed a $210 million refinancing of the joint venture’s transitional and affordable housing portfolio. The transaction was referred to as a Social Bond and facilitated by Freddie Mac in a first-of-its-kind commitment to provide liquidity to social impact financial institutions that create affordable housing for low-income communities and underserved populations.
JPMorgan Chase originated the refinancing package securitized by Freddie Mac as part of its Multifamily Q series. The proceeds will be used to repay existing variable rate debt and to fund reserves, retainages and closing costs. Slate secured the seven-year fixed rate loan.
“We all know the costs and challenges associated with meeting the tremendous demand for transitional and affordable housing, not just in New York but across the country,” said David Schwartz, founding partner of Slate Property Group. “Freddie Mac’s involvement could be critical in lowering financing costs and providing affordable housing and shelter in the future.”
The portfolio includes 12 transitional and affordable housing properties in Manhattan, Brooklyn, Queens and the Bronx with a total of 1,115 beds/units. Each property is leased to a single nonprofit operator and secured by a contract with the New York City Department of Homeless Services.
