NewPoint Real Estate Capital has provided $22.3 million in Freddie Mac Workforce Housing Preservation financing to NOVO Properties to refinance Tudor Place Apartments and Canonbury Square Apartments – neighboring garden-style multifamily communities located in Takoma Park, Maryland.
The refinancing was originated by Martin Fayer, Senior Managing Director at NewPoint. The financing structure, which includes a five-year term with five years of interest only, will help NOVO maintain affordable rents within the properties.
“The decision to utilize Freddie Mac’s Workforce Housing Preservation program exemplifies NOVO’s forward-looking approach and dedication to preserving affordable housing options for the missing middle,” said Martin Fayer. “We have found that voluntary rent restrictions are a powerful tool for lowering debt costs, especially when combined with the ability to rapidly rate lock during a bond market rally.”
The refinance agreement includes a commitment from NOVO to restrict rents on 50% of the units to be affordable at or below 80% of the Area Median Income (AMI). NOVO, a repeat client of both NewPoint and Freddie Mac, will continue to manage the property through its in-house property management division.
“Securing this refinancing on an expedited basis during a volatile market speaks to the efficiency and expertise of the NewPoint and Freddie Mac teams,” said Bruce Hurd, Managing Partner at NOVO. “We are committed to the preservation of affordable housing using both private and public capital. Tudor Place and Canonbury Square have comprised an important part of our portfolio for many years, and with this financing in place, we can continue to provide the local workforce with safe, high-quality, and affordable housing.”
The 134-unit Tudor Place and 95-unit Canonbury Square are situated in Takoma Park, a planned commuter suburb located within Montgomery County, Maryland, roughly five miles northeast of downtown Washington, DC. Built in 1952 and 1955, respectively, Tudor Place and Canonbury Square offer a mix of one- and two-bedroom apartment units. NOVO and its investment partners have owned and operated the properties since 2007. A solar electric system was added to the roofs of the properties in 2018. Community amenities include common laundry facilities and a children’s playground.
