NewPoint Provides $22.3 Million in Freddie Mac Workforce Housing Preservation Financing for Maryland Multifamily Communities
July 01 2024 - 11:27AM
Business Wire
NewPoint Real Estate Capital ("NewPoint") has provided $22.3
million in Freddie Mac Workforce Housing Preservation financing to
NOVO Properties ("NOVO") to refinance Tudor Place Apartments and
Canonbury Square Apartments – neighboring garden-style multifamily
communities located in Takoma Park, MD. The refinancing was
originated by Martin Fayer, Senior Managing Director at
NewPoint.
The financing structure, which includes a five-year term with
five years of interest only, will help NOVO maintain affordable
rents within the properties.
"The decision to utilize Freddie Mac's Workforce Housing
Preservation program exemplifies NOVO's forward-looking approach
and dedication to preserving affordable housing options for the
missing middle," said Martin Fayer. "We have found that voluntary
rent restrictions are a powerful tool for lowering debt costs,
especially when combined with the ability to rapidly rate lock
during a bond market rally."
The refinance agreement includes a commitment from NOVO to
restrict rents on 50% of the units to be affordable at or below 80%
of the Area Median Income (AMI). NOVO, a repeat client of both
NewPoint and Freddie Mac, will continue to manage the property
through its in-house property management division.
"Securing this refinancing on an expedited basis during a
volatile market speaks to the efficiency and expertise of the
NewPoint and Freddie Mac teams," said Bruce Hurd, Managing Partner
at NOVO. “We are committed to the preservation of affordable
housing using both private and public capital. Tudor Place and
Canonbury Square have comprised an important part of our portfolio
for many years, and with this financing in place, we can continue
to provide the local workforce with safe, high-quality, and
affordable housing.”
The 134-unit Tudor Place and 95-unit Canonbury Square are
situated in Takoma Park, a planned commuter suburb located within
Montgomery County, MD, roughly five miles northeast of downtown
Washington, DC. Built in 1952 and 1955, respectively, Tudor Place
and Canonbury Square offer a mix of one- and two-bedroom apartment
units. NOVO and its investment partners have owned and operated the
properties since 2007. A solar electric system was added to the
roofs of the properties in 2018. Community amenities include common
laundry facilities and a children’s playground.
About NewPoint Real Estate Capital
NewPoint Real Estate Capital LLC ("NewPoint") is a prominent
commercial real estate finance company delivering lending solutions
to investors of multifamily, affordable housing, seniors housing,
healthcare, and manufactured housing properties nationwide.
Leveraging technology, data, capital, and the expertise of its
industry-leading team, NewPoint provides loan origination,
servicing, execution, and a suite of Agency and curated proprietary
products to meet the evolving needs of borrowers. In addition to
being a Fannie Mae DUS®, Freddie Mac Optigo®, and FHA/HUD MAP and
LEAN Lender, NewPoint offers proprietary bridge and affordable
housing financing, as well as third-party placement solutions.
About NOVO Properties
Founded in 2003, NOVO Properties ("NOVO") consists of a
portfolio of companies involved in asset management, development,
and property management of multifamily assets located in the DMV
(DC, Maryland and Virginia) and Chicago. NOVO is headquartered on
Capitol Hill in Washington, DC. NOVO currently manages a portfolio
of more than 2,000 apartments, including its most recent delivery
of The Grayson, a newly constructed 119-unit apartment community in
Alexandria, Virginia.
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Britni Ackrivo backrivo@gregoryfca.com 484-504-9920