Kairos Investment Management Co. Secures $175 Million Credit Facility from Fannie Mae to Grow Affordable Housing Portfolio

 

 Carl Chang

LOS ANGELES, CA – Kairos Investment Management Company (KIMC), a firm that focuses on value-based real estate investments, has secured a $175 million credit facility backed by Fannie Mae. 

Berkadia, a leading commercial mortgage lender, originated and will service the credit facility for each transaction.

“In a high inflationary and rising interest rate environment with recession looming, we are well positioned and anticipate seeing many opportunistic multifamily, affordable housing acquisition opportunities,” explains Carl Chang, CEO and Founder of Kairos.

“In fact, we are taking this opportunity to grow this component of our portfolio as we see valuations pull back from all-time highs and the credit facility from Fannie Mae provides Kairos additional leverage and excellent flexibility with a lower cost of capital to do so.

”Our new facility will enable us to act on available opportunities strategically and close on affordable housing deals more quickly and efficiently.”

There are numerous benefits to the Berkadia serviced credit facility, including providing Kairos with better financing rates than utilizing one-off lending transactions.

Jonathan Needell

Jonathan Needell, CIO of Kairos, explains: “This new credit facility gives Kairos the added capital flexibility and heft to take advantage of the excellent opportunities in the market.

"Kairos seeks value-oriented opportunities we can acquire that align with our Impact Strategy and where we invest in affordable housing and LIHTC as well as self-regulated market rate, senior, and manufactured housing segments.”

The growing affordable housing market in an increasingly competitive and complex environment which requires flexible financing options and Berkadia is committed to providing innovative tailored capital solutions to our clients, notes Tim Leonhard, Senior Managing Director, Affordable Housing at Berkadia.

Tim Leonhard

“We are honored to have worked with Kairos on the initial closing of this Fannie Mae supported credit facility,” says Leonhard.

 

“Having the facility in place gives Kairos very low cost of capital, flexible terms, and significant credibility with potential sellers who will know that financing is readily available, allowing them ability to move quickly and secure new acquisition opportunities.”

 

 

Contacts:

 

Arleeny Escarcega / Elisabeth Manville

The Smart Agency, Inc.

(949) 438-6262
aescarcega@thesmartagency.com

www.kimc.com.