NewPoint Provides $20.6 Million in Construction Financing for 99-Unit Milwaukee Affordable Housing Development
MILWAUKEE–(BUSINESS WIRE)–NewPoint Real Estate Capital (“NewPoint”), has provided $20.6 million in NewPoint Impact financing to facilitate the development of Michigan Street Commons, a 99-unit affordable housing community that will be built in Milwaukee, WI. Bear Real Estate Group, a Kenosha, WI-based affordable housing and commercial real estate developer with a portfolio spanning 20 states, is developing the project, which is slated for completion in Spring 2024.
The loan was originated by Cesar Diaz, a Managing Director with NewPoint, and structured as a NewPoint Impact 4% Tax-Exempt Bond Financing. Three series of bonds were issued by the Wisconsin Housing & Economic Development Authority, one of which was a taxable tail. Raymond James was the LIHTC equity syndicator.
“NewPoint is incredibly proud to again partner with Bear Real Estate Group on what represents the first step in the transformational redevelopment of an underutilized corridor in downtown Milwaukee,” Diaz said. “There is nothing easy about kicking off new construction in today’s market. It takes collaboration and coordination from a group of parties committed to expanding affordable housing supply, and that is exactly what we had here.”
Michigan Street Commons is situated on the western border of a larger redevelopment, which is a joint venture of Kacmarcik Enterprises and Bear Real Estate Group. The team is planning an 11-acre mixed-used sports and entertainment district – Iron District MKE – that will include a hotel, event space and a soccer stadium that will serve the USL Championship League and Marquette University.
Located adjacent to Marquette University, Michigan Street Commons will rise on the southwest corner of W. Michigan Street and N. 10th Street on a vacant infill location that currently contains a parking lot. The five-story mid-rise property will contain 48 one-bedroom, one-bath units, and 51 two-bedroom, two-bath units. Approximately 30% of the units will be affordable at 50% of area median income (AMI), 40% will be affordable at 60% AMI, and the remaining 30% will be affordable at 70% AMI. Amenities will include secure entry, on-site management, a community room, fitness center, storage units, underground parking, and elevator service.
“While there was a high level of backing for this project from the state and local government, getting all the puzzle pieces in place on a timeline that supports the developer is a demanding task,” said Rob Wrzosek, President – Affordable Strategies at NewPoint. “Yet once again, NewPoint Impact worked as designed to bring unmatched speed, value and creativity to this complicated process.”
Michigan Street Commons represents the second financing NewPoint provided to Bear Real Estate Group, having recently provided $12 million in construction funding for the development of a 54-unit LIHTC property in Madison, WI, through NewPoint Impact in December 2022.
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. For more information, please visit https://newpoint.com.
Contacts
Elyse Bandel
NewPoint Real Estate Capital
Elyse.Bandel@NewPoint.com
917.447.0143
Michael Ratliff
NewPoint Real Estate Capital
Michael.Ratliff@NewPoint.com
917.636.3578