NewPoint Real Estate Capital has announced 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 solutions.”
The firm is partnering with Morgan Properties, one of the largest multifamily owners in the country, on the new initiative.
Under the leadership of Rob Wrzosek, who was recently elevated to president, affordable strategies, at NewPoint, the firm’s affordable housing team will work closely with its originators and mortgage broker partners to offer a suite of NewPoint Impact products that provides affordable housing developers with a range of solutions from construction loans to long-term permanent financing. Financing amounts start at $8 million and are available to both for-profit and nonprofit 501(c)(3) developers, with terms ranging from two to 40 years, depending on the execution, said the company.
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. The firm will provide both construction and/or acquisition/rehabilitation, as well as permanent financing in conjunction with the 4% low-income housing tax credit (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). This financing involves construction or acquisition/rehabilitation financing, and, upon conversion, NewPoint Impact will underwrite Federal Housing Administration (FHA) Section 223(f) permanent financing; and
- 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, CEO 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.”
His firm is a commercial real estate finance company delivering lending solutions to investors of multifamily, affordable housing, seniors housing, health care, and manufactured housing properties nationwide.
“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, it 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, according to the company. Morgan Properties and its affiliates own and manage a multifamily portfolio comprised of more than 350 apartment communities and over 95,000 units located in 19 states; it ranks No. 3 on the National Multifamily Housing Council’s top 50 apartment owners of 2022.
“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 jump-start construction on these critically needed affordable housing projects.”
