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6/15/16
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Berkeley Point Capital LLC closed a $20 mil financing package using Freddie Mac’s Direct Purchase of Tax-Exempt Loans (TEL) program for the Positano Apartments, an affordable apartment community located in Goleta, CA. The financing package was secured on behalf of the Housing Authority of the County of Santa Barbara (HACSB) and closed on May 3, 2016.
The financing also provides $7 mil of funds for capital improvements, which are able to be completed without the displacement of any tenant. The TEL program was designed by Freddie Mac to work seamlessly with the 4% LIHTC program providing sponsors, like HACSB, a cost-effective and efficient means to preserve and upgrade the country's affordable housing stock.
Berkeley Point Capital’s Matt Naish originated the loan, which actually consisted of two parts. The first was an 18-year fixed-rate, 35-year amortizing loan with two years of interest only. The second loan was structured to insure the project satisfied the 50% test, a first for Freddie Mac’s TEL program.
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