A partnership between Slate Property Group and Fundamental Advisors has successfully completed a $210 million refinancing for their Transitional and Affordable Housing Portfolio. This transaction was designated as a Social Bond, made possible by Freddie Mac in an unprecedented effort to provide liquidity to social impact financial institutions that bring affordable housing to low-income communities and underserved populations.
The refinancing package was originated by JPMorgan Chase, securitized by Freddie Mac as part of its Multifamily Q series. The funds will be used to pay off existing floating-rate debt and cover reserves, holdbacks, and closing costs. Slate secured the seven-year fixed-rate loan.
David Schwartz, founding principal of Slate Property Group stated: “We are all aware of the challenges involved in meeting the high demand for transitional and affordable housing not just in New York but across the nation.” He also expressed his belief that this engagement with Freddie Mac could potentially revolutionize financing options for providing much-needed shelter at lower costs moving forward.
The portfolio consists of 12 properties offering transitional or affordable housing located throughout Manhattan, Brooklyn Queens ,and Bronx totaling 1,115 beds/units. Each property is leased out to a different non-profit operator backed up by a contract with New York City’s Department of Homeless Services.
