NewPoint Real Estate Capital (“NewPoint”), a pioneering real estate finance company, announces the launch of NewPoint Impact, a proprietary affordable housing lending platform that pairs private capital with government-subsidized products to deliver an innovative set of next-generation affordable housing financing solutions. NewPoint Impact is a partnership between NewPoint and Morgan Properties, one of the largest multifamily owners in the US.
“These solutions solve for contemporary challenges and provide additional certainty in creating and preserving desperately needed affordable housing during an increasingly volatile environment.”
Under the leadership of NewPoint’s Rob Wrzosek, who was recently elevated to President – Affordable Strategies, NewPoint’s Proprietary Affordable Team will work closely with the firm’s originators and mortgage broker partners to offer the suite of NewPoint Impact products that provides affordable housing developers with a full gamut of flexible, custom-tailored solutions from construction loans to long-term permanent financing. Financing amounts start at $8 million and are available to both for-profit and non-profit 501(c)(3) developers, with terms ranging from 2 to 40 years, depending on the execution.
NewPoint Impact will finance the construction and/or acquisition/rehabilitation of affordable housing through a variety of financial products, including:
- NewPoint Impact 4% Tax-Exempt Bond Financing. NewPoint Impact will provide both construction and/or acquisition/rehabilitation, as well as permanent financing in conjunction with the 4% LIHTC program.
- NewPoint Impact 4% Fannie Mae M.TEBs. NewPoint Impact will provide construction or acquisition/rehabilitation financing through a municipal bond product while Fannie Mae writes an unfunded forward commitment for permanent financing pursuant to its MBS as Tax-Exempt Bond Collateral (M.TEB) execution.
- NewPoint Impact Synthetic 221(d)(4). NewPoint Impact will provide construction or acquisition/rehabilitation financing, and, upon conversion, NewPoint Impact will underwrite FHA 223(f) permanent financing.
- NewPoint Impact Resyndication Bridge Loan. NewPoint Impact will provide bridge loans for the acquisition or refinancing of affordable housing being repositioned for a recapitalization with 4% LIHTCs, with permanent financing expected to be provided by NewPoint Real Estate Capital.
“We created NewPoint to transform multifamily finance, and it’s impossible to do so without breaking new ground in affordable housing finance,” said David Brickman, Chief Executive Officer of NewPoint. “We have already established an affordable housing platform comprised of the foremost experts in Fannie Mae, Freddie Mac and FHA executions – now, through our partnership with Morgan Properties, we have created additional tools to bring unmatched value, speed and creativity to the organizations working to solve our nation’s affordable housing crisis.”
“Our goal with the NewPoint Impact products is to provide investors and developers with something fundamentally different in a sector that has remained relatively unchanged in recent years, despite a market that has evolved,” Wrzosek added. “These solutions solve for contemporary challenges and provide additional certainty in creating and preserving desperately needed affordable housing during an increasingly volatile environment.”
In 2017, Morgan Properties established its Special Situations platform to invest in equity recapitalizations, fixed-income securities and other alternative investment opportunities. Since launching the endeavor, Morgan Properties has been one of the most active Freddie Mac K Series investors, having closed on the acquisition of 29 B-Piece deals across $28 billion in loans. The partnership with NewPoint will afford Morgan Properties with the ability to provide liquidity to an increasingly supply-constrained affordable housing sector.
“The diminishing supply of affordable housing has put a massive strain on renters across the country. At Morgan Properties, it is in our DNA to provide solutions that make renting more accessible and provide a better living experience for all,” said Jason Morgan, Principal and President of Morgan Properties Special Situations. “Partnering with NewPoint is a great opportunity to not only lend our expertise and expand our credit platform, but also help developers jumpstart construction on these critically-needed affordable housing projects.”
With nearly a quarter of US rental households spending more than 50% of income on rent (Harvard JCHS), NewPoint Impact is committed to providing creative solutions to help expand the supply of high-quality, affordable rental housing to those in need. The NewPoint Impact financing solutions were created with direct input from leading affordable housing developers to provide a single source of low-cost financing focused on mitigating risks and maximizing efficiencies across all stages of a community’s lifecycle.
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