JV Closes on $210M Refi for Transitional and Affordable Housing

A joint venture of Slate Property Group and Fundamental Advisors has closed on a $210-million refinancing for the JV’s Transitional and Affordable Housing Portfolio. The transaction was designated as a Social Bond and was made possible by Freddie Mac in a first-of-its kind engagement to provide liquidity to social impact financial institutions that bring affordable housing to 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 pay down existing floating-rate debt and to fund reserves, holdbacks and closing costs. Slate secured the seven-year, fixed-rate loan.

“We all know the costs and challenges of meeting the enormous demand for transitional and affordable housing, not only in New York, but across the country,” said David Schwartz, founding principal of Slate Property Group. “The engagement by Freddie Mac could become a game changer in lowering the cost of financing and providing affordable housing and shelter moving forward.”

The portfolio includes 12 transitional and affordable housing properties located throughout Manhattan, Brooklyn, Queens and the Bronx, totaling 1,115 beds/units. Each property is leased to a unique not-for-profit operator and backed by a contract with the New York City Department of Homeless Services.