New Flexible Tool for Members
Housing Partnership Network (HPN) members in certain markets now have access to HPF FlexCap, a new high-leverage bridge/acquisition loan from the Housing Partnership Fund. It features a low interest rate and flexible underwriting criteria for a variety of strategies – from a “buy and hold” approach bridging long-term financing to supporting acquisition and redevelopment. HPF is committed to meeting the capital needs of HPN members and closed its first FlexCap loan in January 2022 with Wesley Housing.
$10.2MM Loan For 66-unit NOAH
Rents are rising rapidly in the Arlandria-Chirilagua neighborhood of Alexandria, VA, due to a future Metrorail development at Potomac Yard and proximity to Amazon HQ2. A Wesley Housing plan to acquire and redevelop properties nearby and surrounding its existing 33-unit Beverly Square Apartments sparked the proposal to purchase the adjacent 66-unit Parc Square Apartments and combine the two sites to redevelop and rebuild nearly 300 units. This deal triples quality long-term affordable housing for existing and future residents.
“Through an attractive rate, a wealth of expertise in real estate financing and underwriting, and abundant flexibility, HPF FlexCap made it possible to navigate the complexities of preserving affordable housing and advancing inclusive prosperity in a gentrifying community.”Kamilah McAfee VP Real Estate Development, Wesley Housing
HPF as a Trusted Partner
HPF’s lending team worked closely with Wesley throughout underwriting, approval, and closing of a $10.2MM loan for a 66-unit NOAH. HPF provided certainty of execution by understanding the challenging nature of a redevelopment project and acquisition of a C-class asset. HPF also approved a higher loan-to-value before Amazon’s equity commitment and closed knowing that the site's receivables were high, but that Wesley had capacity to manage the asset and obtain rental assistance.
For more on FlexCap or any financing need, contact Lending Director, Ben Greenberg.
View the Term Sheet and more project details here.