NewPoint Real Estate Capital 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, Wisconsin.
The loan was originated by Cesar Diaz, a 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.
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. 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.
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.
