Commercial/Multifamily Briefs from PNC Bank, Fannie Mae, CBRE
PNC Bank Closes $181 Million Fund To Develop, Rehabilitate Affordable Housing for Families and Seniors
PNC Bank, N.A., Pittsburgh, closed a $181 million fund to develop and rehabilitate affordable rental housing for families and seniors. PNC said the fund will provide financing for nearly 1,800 affordable housing rental units at 17 multifamily properties across 13 states.
This affordable housing fund is institutionally managed by PNC Bank and includes investments from 12 of the largest national banks and insurance companies in the U.S. in addition to PNC Bank’s own investment. To date, the fund has acquired nine properties in several states, including California, Michigan, New Jersey and Oregon. Construction has already begun on nine of the acquired properties and commitments have been formalized with an additional eight investments.
PNC Bank invests in, sponsors and syndicates funds investing in Low Income Housing Tax Credits, New Markets Tax Credits, Historic Tax Credits and affordable housing preservation projects. PNC is one of a small number of banks that has successfully launched a dedicated business, PNC Tax Credit Solutions, that is devoted to preserving and bolstering affordable housing supply and spurring economic development. Additionally, PNC has launched more than 90 proprietary syndicated tax credit funds to support LIHTC, NMTC, HTC and Preservation efforts and projects.
“Affordability of rental housing is an urgent issue for many Americans,” said Todd Crow, EVP and head of PNC Tax Credit Solutions. “Market rents are beyond the reach of too many families and seniors in the U.S. and that trend has intensified in the last few years as housing costs have soared. At PNC, we know it’s never been more critical to work with our developer partners and investors to increase and preserve the supply of affordable rental housing.”
For more information about PNC Tax Credit Solutions, visit www.pnc.com/realestate.
Fannie Mae Prices $604 Million Multifamily DUS REMIC (FNA 2022-M13)
Fannie Mae, Washington, D.C., priced a $604 million Multifamily DUS REMIC under its Guaranteed Multifamily Structures program on September 8, 2022. FNA 2022-M13 marks the seventh Fannie Mae GeMS issuance of 2022.
“The new issue market was crowded last week following the summer holidays, so we were pleased that investors were able to focus on the M13 deal with its discount, 10-year call-protected, fixed-rate collateral,” said Dan Dresser, Senior Vice President, Multifamily Capital Markets and Pricing, Fannie Mae. “The spreads on the DUS MBS, which serves as the collateral backing the GeMS transaction, remained strong relative to other asset classes during this volatile year, and investors appreciate the ability for the market to create larger, well-diversified pools of the DUS MBS through the GeMS resecuritization process.”
Fannie Mae guarantees all classes of FNA 2022-M13 regarding the full and timely payment of interest and principal.
For additional information, visit the Fannie Mae GeMS REMIC Term Sheet (FNA 2022-M13) available on the Fannie Mae GeMS Archive page.
CBRE To Invest $100 Million in VTS
CBRE Group, Dallas, is investing $100 million in proptech company VTS, New York.
In addition to its capital investment, CBRE will partner with VTS to roll out the VTS Platform with enhancements and integrations, as the technology platform of choice for its agency leasing and property management teams.
“Over the past two years, VTS has undergone a transformative evolution, shifting from a single-product company to a multi-product platform that serves every player in the ecosystem–from landlord to broker to tenant,” said Nick Romito, CEO of VTS. “This infusion of capital lets us double down there, allowing our customers to offer a completely tailored property experience to their tenants across their entire portfolios.”
Ryan Masiello, Chief Strategy Officer for VTS, noted the funding comes at a pivotal time in commercial real estate history. “As the industry races to modernize the office experience, integrating property management and leasing has never been more important and our partnership with CBRE is an example of that coming to life in a material way,” he said.
