Kairos Investment Management Company Secures $175 Mil Fannie Mae-Backed Credit Facility

Kairos Investment Management Company (KIMC) has secured a $175 mil 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. The 20-year facility term enables the firm to close different loan tranches with varying maturities to better manage long-term refinancing risk and future capital events. By combining fixed and floating rate tranches, the facility allows for greater flexibility when it comes to interest rate management, as well as the ability to add or remove different assets to the collateral pool without incurring prepayment penalties.