LOS ANGELES – September 21, 2020 – Berkadia today announced the $50.9 million in financing secured for a pool of 276 rental homes across 14 states. The homes are owned by an affiliate of CapGrow Partners and are rented to professional healthcare providers that provide housing for individuals with intellectual and developmental disabilities. Managing Director Anthony Cinquini of Berkadia’s Los Angeles office secured the financing through Freddie Mac on behalf of the Chicago-based CapGrow Partners. The deal closed on August 27.
The 10-year permanent refinancing was sized using a 75 percent loan-to-value ratio and 30-year amortization schedule. This is the fifth loan executed with CapGrow Partners since late 2015. Berkadia is the only Freddie Mac seller/servicer to date to provide pooled and scattered financing for housing through Freddie Mac’s rental housing for the Intellectually and Developmentally Disabled program. Premium Title, an Altisource business unit, acted as the title and settlement agent for the financing.
“CapGrow Partners was the first borrower to use this program to provide housing for individuals with intellectual and developmental disabilities when we created this financing platform in 2015. We are honored to have assisted in the creation of this unique financing product with Freddie Mac and pleased that we are able to continue to perfect the structure,” said Cinquini. “CapGrow Partners is an industry leader in owning and leasing homes that are utilized to provide clean, safe, sanitary and affordable housing for individuals with intellectual and developmental disabilities.”
CapGrow offers housing to more than 3,500 individuals across 38 states.
“The continued lending support provided by both Berkadia and Freddie Mac has enabled our team to remain focused on increasing opportunities for individuals receiving behavioral health services to transition out of an institutional setting and into a community-based home,” said Matt Pettinelli, Founder and CEO of CapGrow Partners.
“Together with Berkadia and CapGrow we are advancing housing opportunities for individuals with intellectual and developmental disabilities,” said Charlie Crowe of Freddie Mac Multifamily’s Targeted Affordable Housing group. “This undertaking aligns directly with the Freddie Mac mission of supporting affordable housing, especially for underserved communities. Hundreds of individuals will have access to affordable rental housing that meets their unique needs because of this effort.”