LAS VEGAS – March 28, 2019 – Berkadia today announced it worked to arrange permanent refinancing through Freddie Mac for Veterans Village II in Downtown Las Vegas. Veterans Village is a Las Vegas-based nonprofit that is committed to providing comprehensive housing services to United States military veterans. This was one of the first Freddie Mac Optigo℠ Targeted Affordable Mezzanine loan transactions, which, together with a Freddie Mac’s Targeted Affordable Housing cash preservation loan offers favorable financing for projects that preserve affordable housing.
“Veterans Village provides crucial housing opportunities and support services to United States military veterans in Las Vegas,” said Ernie Katai, Berkadia Head of Production. “Over the years, they’ve created an incredible, powerful community and we are proud to partner with them to continue to expand the impact of their mission.”
“Veterans Village Las Vegas is proud to partner with Freddie Mac and Berkadia. It is a great example and model for this public/private partnership to continue to preserve and to provide housing and supportive services with respect and dignity for our United States Veterans,” said Veterans Village Founder Dr. Arnold Stalk. “We are grateful to Freddie Mac and Berkadia and we hope to take this model throughout the United States.”
The Property is comprised of 204 garden-style apartments, 147 of which have been transitioned to U.S. veteran-related tenants since the property’s acquisition in 2016. All of the units at Veterans Village II are affordable to low income veterans with incomes of 80 percent of Area Median Income or less and a substantial number of the veteran-tenants receive tenant-based VASH (Veterans Affairs Supportive Housing) vouchers to assist in paying rent. VASH is a type of Section 8/Housing Choice Voucher program jointly administered by HUD and the Veterans Administration. The Borrower, working in conjunction with Southern Nevada Regional Housing Authority and the Veterans Administration, intends to lease the balance of the units to U.S. veterans as units become available.
“Properties like Veterans Village II are what we had in mind when we created the Optigo Targeted Affordable Mezzanine Loan,” said David Leopold, vice president, Targeted Affordable Sales & Investments. “The loan structure allows us to provide an ideal refinancing option for borrowers seeking to preserve affordable housing. We’re proud to have again partnered with Berkadia to help provide affordable housing to hundreds of military veterans.”
This is the second time Berkadia has partnered with Veterans Village. In 2016, Berkadia facilitated the sale of Park Forest, a 204-unit housing complex, to serve as a location for Veterans Village in the Las Vegas area.