Kairos Secures $175M Fannie Mae Loan to Grow Affordable Housing

Kairos Investment Management Company (KIMC) has secured a $175 million credit facility backed by Fannie Mae (FNMA), the real estate firm announced Friday.

Berkadia — which is a joint venture of Berkshire Hathaway (BRK.A) and Jefferies Financial Group — originated and will service the credit facility for each transaction. 

The 20-year loan term enables KIMC to close different loan tranches with varying maturities. By combining fixed- and floating-rate tranches, the facility also allows more 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.

“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,” Carl Chang, CEO and founder of KIMC, said in a statement. “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.”