Wisconsin Affordable Housing Development Moves Forward with $12 Million in Financing from NewPoint Impact
Madison, WI (December 13, 2022) – NewPoint Real Estate Capital (“NewPoint”) has provided $12 million in NewPoint Impact financing to facilitate the development of The Flats at 402, a 54-unit affordable housing community that will be built in Madison, WI. The loan was originated by Cesar Diaz, a Managing Director with NewPoint Real Estate Capital, and structured as a NewPoint Impact 4% Tax-Exempt Bond Financing. Three series of bonds were issued by the Housing Authority of Dane County, one of which was a taxable tail. National Equity Fund was the LIHTC equity syndicator. The sponsor is Bear Real Estate Group, a Kenosha, WI-based affordable housing and commercial real estate developer with a portfolio spanning 20 states.
“This was truly a collaborative financing solution, as the execution required a high degree of organization and synchronization given the tight timeline,” Diaz said. “All parties involved were exceedingly committed to supporting Madison’s affordable housing supply and came together to skillfully deliver this funding.”
Located less than four blocks south of the Wisconsin State Capitol, The Flats at 402 will rise on the northwest corner of West Wilson and South Broom streets in downtown Madison, with walkable access to restaurants, museums, shopping, trails and green spaces. The unit mix will include 29 one-bedroom units and 25 two-bedroom units, all restricted to residents at 50% to 60% of the area median income (AMI). The limestone exterior of an existing two-story commercial property will be repurposed for the construction of The Flats at 402, and an existing parking lot will be demolished and replaced with an underground parking garage.
“While Madison is not a market typically referenced when discussing the affordable housing crisis, its population has increased nearly 16% in the past decade, driven by job growth in high-wage technology sectors and low-wage service sector jobs,” said Rob Wrzosek, President – Affordable Strategies at NewPoint. “Rents have increased dramatically, and the city estimates it needs to add 10,000 units every five years to curtail the crisis. This situation is emblematic of the issues facing cities across the nation, and exactly why NewPoint developed a suite of efficient and impactful financing tools.”
Launched in August 2022, NewPoint Impact is a proprietary affordable housing lending platform that pairs private capital with government-subsidized products to deliver an innovative set of next-generation affordable housing financing solutions. NewPoint Impact finances the construction and/or acquisition/rehabilitation of affordable housing through a variety of financial products. Financing amounts start at $8 million and are available to both for-profit and non-profit 501(c)(3) developers, with terms ranging from 2 to 40 years, depending on the execution.
About Bear Real Estate Group
With roots dating back to 1924, Bear Real Estate Group prides itself on its rich history of providing innovative solutions to complicated real estate developments. Since 1986, the family-owned and operated company has been involved with the acquisition and development of residential, multifamily, hospitality, retail, office and industrial projects. Today, Bear is an integrated organization with affiliated companies in Development, Construction, Property Management and Brokerage. The firm is based on Kenosha, WI and currently owns and manages real estate in 20 states.
About NewPoint Real Estate Capital
NewPoint Real Estate Capital LLC (NewPoint) is a prominent commercial real estate finance company delivering lending solutions to investors of multifamily, affordable housing, seniors housing, healthcare, and manufactured housing properties nationwide. NewPoint leverages technology, data, capital, and the expertise of its industry-leading team to provide loan origination, servicing, execution, and a suite of Agency and curated proprietary products to meet the evolving needs of borrowers. In addition to being a Fannie Mae DUS®, Freddie Mac Optigo®, and FHA/HUD MAP and LEAN Lender, NewPoint also offers proprietary bridge and affordable housing financing.