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Systima closes $153M tax-exempt CMBS for nearly 1,300 affordable units

The transaction was oversubscribed, drawing more than $1.2 billion in orders from 19 institutional investors, according to Systima.

Reported · Written up by our desk · Mortgages

Systima Capital Management has closed a $153 million tax-exempt commercial mortgage-backed securities, or CMBS, deal aimed at financing an affordable housing portfolio totaling 1,272 units. The private-label securitization, executed through the Public Finance Authority, was backed by a pool of loans tied to seven properties participating in the federal Low-Income Housing Tax Credit, or LIHTC, program. The properties span Wisconsin, Illinois, Florida, Tennessee, and Texas.

According to Systima, the offering was significantly oversubscribed with more than $1.2 billion in orders from 19 institutional investors. Systima said the tax-exempt CMBS debt is positioned to become more mainstream due to strong investor appetite.

J.P. Morgan led the transaction as lead underwriter, with Wells Fargo serving as co-manager, and Systima retained the subordinate Class B certificates. Systima also said the loan proceeds supported acquisition, construction, rehabilitation, and preservation of affordable housing communities for families earning at or below 60 percent of area median income.

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