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Bridge closes first property via social impact financing from Freddie
By Wendy Van Sickle
Columbus, Ohio, May 3 – Bridge Multifamily Fund Manager and Freddie Mac closed a transaction on Thursday designed to provide long-term, rental housing affordable to low-income and working families, in conjunction with Wells Fargo and KeyBank, according to a press release.
Bridge and Wells Fargo closed their first financing under Freddie Mac’s MultiAsset Commitment with a focus on affordability, in which Freddie Mac will purchase up to $500 million of loans over a year to allow Bridge to acquire, improve and preserve workforce and affordable housing stock nationwide.
After the year is up, Freddie Mac will place the total loans in a single securitization, for which Bridge will be required to purchase the subordinate bonds. Wells Fargo will originate $400 million of the commitment and KeyBank will originate $100 million.
“This execution incentivizes Bridge to keep rents affordable without relying solely on federal, state, or municipal affordable housing programs. The transaction marks a milestone in Freddie Mac’s effort to find innovative ways to bring affordability to renters,” according to the release.
Bridge has agreed that a majority of units in each property will be rented to people earning below 80% of area median income and will remain that way for the life of each loan.
The first asset to be acquired, a 352-unit multifamily community in Plant City, Fla., has 82% of rents affordable to those residents earning less than 80% area median income, the release states.
Bridge Multifamily Fund Manager is an affiliate of Bridge Investment Group, a privately held real estate investment management firm that is based in New York City.
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