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Systima closes $153M tax-exempt CMBS deal for nearly 1,300 apartments
The offering was oversubscribed, drawing more than $1.2 billion of orders from 19 institutional investors across seven LIHTC properties.
Commercial Observer reports that Systima Capital Management has closed a private-label securitization tied to affordable housing, using tax-exempt commercial mortgage-backed securities (CMBS) debt for a portfolio of nearly 1,300 subsidized apartments.
The transaction totals $153 million and securitizes a pool of loans on seven properties developed through the federal Low-Income Housing Tax Credit program, supporting a 1,272-unit portfolio in Wisconsin, Illinois, Florida, Tennessee, and Texas.
According to the outlet, the deal was significantly oversubscribed, with more than $1.2 billion in orders from 19 institutional investors. Systima also said the tax-exempt CMBS offering is positioned to become more mainstream as investor demand grows.
Commercial Observer adds that J.P. Morgan led the transaction as lead underwriter, with Wells Fargo as co-manager, and Systima retained the subordinate Class B certificates. The company said loan proceeds funded acquisition, construction, rehabilitation, and preservation of communities aimed at families earning at or below 60 percent of area median income.