XML 59 R48.htm IDEA: XBRL DOCUMENT v3.23.2
Debt Financing (Tables)
 6 Months Ended
Jun. 30, 2023
Debt Financing [Abstract]  
Schedule of Total Debt Financing

The following tables summarize the Partnership’s debt financings, net of deferred financing costs, as of June 30, 2023 and December 31, 2022:

 

 

Outstanding Debt Financings
as of June 30, 2023, net

 

 

Restricted
Cash

 

 

Stated
Maturities

 

Interest Rate Type

 

Tax-Exempt Interest on Senior Securities (1)

 

Remarketing Senior
Securities Rate (2)

 

Facility Fees

 

Period End
Rates

 

TEBS Financings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

M31 TEBS

(3)

$

67,336,179

 

 

$

4,999

 

 

2024

 

Variable

 

Yes

 

4.03%

 

1.33%

 

5.36%

 

M24 TEBS

 

 

7,394,539

 

 

 

204,000

 

 

2027

 

Fixed

 

Yes

 

N/A

 

N/A

 

3.05%

 

M33 TEBS

 

 

29,215,208

 

 

 

2,606

 

 

2030

 

Fixed

 

Yes

 

N/A

 

N/A

 

3.24%

 

M45 TEBS

(4)

 

210,858,753

 

 

 

5,000

 

 

2034

 

Fixed

 

Yes

 

N/A

 

N/A

 

3.82%

 

Subtotal/Weighed Average Period End Rate

 

 

314,804,679

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.08%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured Notes

 

$

102,325,117

 

 

 

30,781,036

 

 

2025

 

Variable

 

No

 

N/A

 

N/A

 

14.32%

(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOB Trust Securitizations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mizuho Capital Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust 2020-XF2908

(6)

$

27,800,558

 

 

(7)

 

 

2023

 

Variable

 

No

 

5.38%

 

0.90%

 

6.28%

 

Hope on Avalon GIL

 

 

18,709,641

 

 

(7)

 

 

2023

 

Variable

 

Yes

 

4.41%

 

1.44%

 

5.85%

 

Hope on Broadway GIL

 

 

9,680,401

 

 

(7)

 

 

2023

 

Variable

 

Yes

 

4.41%

 

1.44%

 

5.85%

 

Ocotillo Springs - Series A

 

 

9,980,000

 

 

(7)

 

 

2023

 

Variable

 

Yes

 

4.41%

 

0.91%

 

5.32%

 

Jackson Manor Apartments

 

 

5,865,000

 

 

(7)

 

 

2023

 

Variable

 

Yes

 

4.41%

 

1.29%

 

5.70%

 

Trust 2021-XF2926

(8)

 

57,521,786

 

 

(7)

 

 

2024

 

Variable

 

No

 

5.38%

 

0.90%

 

6.28%

 

Trust 2021-XF2939

(9)

 

10,252,705

 

 

(7)

 

 

2024

 

Variable

 

No

 

5.38%

 

1.17%

 

6.55%

 

SoLa Impact Opportunity Zone Fund

 

 

24,511,502

 

 

(7)

 

 

2024

 

Variable

 

No

 

5.38%

 

1.78%

 

7.16%

 

Scharbauer Flats GIL

 

 

36,000,000

 

 

(7)

 

 

2024

 

Variable

 

Yes

 

4.41%

 

0.91%

 

5.32%

 

Centennial Crossing GIL

 

 

29,772,000

 

 

(7)

 

 

2024

 

Variable

 

Yes

 

4.41%

 

0.91%

 

5.32%

 

Residency at the Mayer - Series A

 

 

24,335,000

 

 

(7)

 

 

2024

 

Variable

 

Yes

 

4.41%

 

1.19%

 

5.60%

 

Montevista - Series A

 

 

5,636,485

 

 

(7)

 

 

2025

 

Variable

 

Yes

 

4.41%

 

1.28%

 

5.69%

 

Montecito at Williams Ranch - Series A

 

 

6,842,659

 

 

(7)

 

 

2025

 

Variable

 

Yes

 

4.41%

 

1.18%

 

5.59%

 

Vineyard Gardens - Series A

 

 

3,593,154

 

 

(7)

 

 

2025

 

Variable

 

Yes

 

4.41%

 

1.18%

 

5.59%

 

The Park at Sondrio - Series 2022A

 

 

30,374,367

 

 

(7)

 

 

2025

 

Variable

 

Yes

 

4.41%

 

1.43%

 

5.84%

 

The Park at Vietti - Series 2022A

 

 

21,504,982

 

 

(7)

 

 

2025

 

Variable

 

Yes

 

4.41%

 

1.43%

 

5.84%

 

Avistar at Copperfield - Series A

 

 

11,436,313

 

 

(7)

 

 

2025

 

Variable

 

Yes

 

4.41%

 

1.68%

 

6.09%

 

Avistar at Wilcrest - Series A

 

 

4,327,312

 

 

(7)

 

 

2025

 

Variable

 

Yes

 

4.41%

 

1.68%

 

6.09%

 

Residency at the Entrepreneur MRBs

 

 

17,120,000

 

 

(7)

 

 

2025

 

Variable

 

Yes

 

4.41%

 

1.45%

 

5.86%

 

Legacy Commons at Signal Hills & Hilltop at Signal Hills GILs

 

 

53,160,000

 

 

(7)

 

 

2025

 

Variable

 

Yes

 

4.41%

 

0.91%

 

5.32%

 

Osprey Village GIL

 

 

48,260,000

 

 

(7)

 

 

2025

 

Variable

 

Yes

 

4.41%

 

1.19%

 

5.60%

 

Residency at Empire MRBs

 

 

14,199,079

 

 

(7)

 

 

2026

 

Variable

 

Yes

 

4.41%

 

1.42%

 

5.83%

 

The Ivy Apartments

 

 

24,305,718

 

 

(7)

 

 

2026

 

Variable

 

Yes

 

4.41%

 

1.44%

 

5.85%

 

Windsor Shores Apartments

 

 

17,162,512

 

 

(7)

 

 

2026

 

Variable

 

Yes

 

4.41%

 

1.44%

 

5.85%

 

Village at Hanford Square

 

 

7,741,554

 

 

(7)

 

 

2026

 

Variable

 

Yes

 

4.41%

 

1.44%

 

5.85%

 

MaryAlice Circle Apartments

 

 

4,673,897

 

 

(7)

 

 

2026

 

Variable

 

Yes

 

4.41%

 

1.44%

 

5.85%

 

Meadow Valley

 

 

8,458,256

 

 

(7)

 

 

2026

 

Variable

 

Yes

 

4.41%

 

1.44%

 

5.85%

 

Avistar at Wood Hollow - Series A

 

 

32,882,940

 

 

(7)

 

 

2027

 

Variable

 

Yes

 

4.41%

 

1.44%

 

5.85%

 

Live 929

 

 

53,092,000

 

 

(7)

 

 

2027

 

Variable

 

Yes

 

4.41%

 

1.18%

 

5.59%

 

Barclays Capital Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust 2021-XF2953

(10)

 

61,431,267

 

 

 

-

 

 

2024

 

Variable

 

No

 

5.20%

 

1.27%

 

6.47%

 

Poppy Grove I GIL

 

 

10,666,615

 

 

 

-

 

 

2024

 

Variable

 

Yes

 

4.08%

 

1.25%

 

5.33%

 

Poppy Grove II GIL

 

 

5,222,615

 

 

 

-

 

 

2024

 

Variable

 

Yes

 

4.08%

 

1.25%

 

5.33%

 

Poppy Grove III GIL

 

 

9,229,615

 

 

 

-

 

 

2024

 

Variable

 

Yes

 

4.08%

 

1.25%

 

5.33%

 

Village Point

 

 

18,361,459

 

 

 

-

 

 

2024

 

Variable

 

Yes

 

4.13%

 

1.61%

 

5.74%

 

Subtotal/Weighed Average Period End Rate

 

 

724,111,392

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5.85%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term TOB Trust Securitizations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Morgan Stanley:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Village at Avalon

 

$

12,787,975

 

 

 

-

 

 

2024

 

Fixed

 

Yes

 

N/A

 

N/A

 

1.98%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt Financings

 

$

1,154,029,163

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)
The tax treatment of interest paid to the trust senior trust securities is dependent on the structure of the trust financing. Debt financings designated as “tax-exempt” in the table above are such that the Partnership expects and believes the interest on the senior securities is exempt from federal income taxes, which typically requires a lower remarketing rate to place the senior securities at each weekly reset.
(2)
The remarketing senior securities rate is the market interest rate determined by the remarketing agent to ensure all senior securities tendered by holder for weekly remarketing are purchased at par.
(3)
Facility fees have a variable component. The stated maturity date in July 2024 is the expiration of the liquidity commitment rate from Freddie Mac. On that date, Freddie Mac will either extend the liquidity commitment, reset the liquidity commitment fee rate, or require the conversion to a fixed rate mode at a rate dependent on market conditions on that date. Freddie Mac cannot require redemption of the outstanding Class A Certificates on that date. The Partnership also has the right to terminate the facility and obtain alternative debt financing.
(4)
The M45 TEBS has an initial interest rate of 3.82% through July 31, 2023. From August 1, 2023 through the stated maturity date, the interest rate is 4.39%. These rates are inclusive of credit enhancement fees payable to Freddie Mac.
(5)
The Secured Notes have a stated rate of 9.25% plus SOFR which resets monthly. The Partnership has entered into a total return swap transaction with the Secured Notes as the reference security and a notional amount totaling the outstanding principal on the Secured Notes. The total return swap effectively nets down the interest rate on the Secured Notes. Considering the effect of the total return swap, the effective net interest rate of the Secured Notes is 9.07% as of June 30, 2023. See Note 18 for further information on the total return swap.
(6)
The TOB trust is securitized by the Scharbauer Flats Apartments and Centennial Crossings property loans.
(7)
The Partnership has restricted cash totaling approximately $9,543,000 related to its total net position with Mizuho Capital Markets.
(8)
The TOB trust is securitized by the Legacy Commons at Signal Hills property loan, Hilltop at Signal Hills property loan, and the Hope on Avalon
taxable GIL.
(9)
The TOB trust is securitized by the Residency at the Mayer taxable MRB, Ocotillo Springs taxable MRB, and Osprey Village property loan.
(10)
The TOB trust is securitized by the Willow Place GIL and property loan, Lutheran Gardens MRB, Magnolia Heights GIL and property loan, Poppy Grove I taxable GIL, Poppy Grove II taxable GIL and Poppy Grove III taxable GIL.

 

 

 

Outstanding Debt Financings
as of December 31, 2022, net

 

 

Restricted
Cash

 

 

Stated
Maturities

 

Interest Rate Type

 

Tax-Exempt Interest on Senior Securities (1)

 

Remarketing Senior
Securities Rate (2)

 

Facility Fees

 

Period End
Rates

 

TEBS Financings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

M31 TEBS (3)

 

$

75,570,121

 

 

$

4,999

 

 

2024

 

Variable

 

Yes

 

3.69%

 

1.55%

 

5.24%

 

M24 TEBS

 

 

7,489,619

 

 

 

204,000

 

 

2027

 

Fixed

 

Yes

 

N/A

 

N/A

 

3.05%

 

M33 TEBS

 

 

29,549,954

 

 

 

2,606

 

 

2030

 

Fixed

 

Yes

 

N/A

 

N/A

 

3.24%

 

M45 TEBS (4)

 

 

211,914,923

 

 

 

5,000

 

 

2034

 

Fixed

 

Yes

 

N/A

 

N/A

 

3.82%

 

Subtotal/Weighed Average Period End Rate

 

 

324,524,617

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.08%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured Notes

 

$

102,488,160

 

 

 

35,979,743

 

 

2025

 

Variable

 

No

 

N/A

 

N/A

 

13.05% (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOB Trust Securitizations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mizuho Capital Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Montevista - Series A

 

$

5,650,044

 

 

(6)

 

 

2023

 

Variable

 

Yes

 

3.86%

 

1.27%

 

5.13%

 

Trust 2020-XF2908 (7)

 

 

43,472,232

 

 

(6)

 

 

2023

 

Variable

 

No

 

4.57%

 

0.89%

 

5.46%

 

Hope on Avalon GIL

 

 

18,695,484

 

 

(6)

 

 

2023

 

Variable

 

Yes

 

3.86%

 

1.44%

 

5.30%

 

Hope on Broadway GIL

 

 

9,670,809

 

 

(6)

 

 

2023

 

Variable

 

Yes

 

3.86%

 

1.44%

 

5.30%

 

Ocotillo Springs - Series A

 

 

9,978,639

 

 

(6)

 

 

2023

 

Variable

 

Yes

 

3.86%

 

0.91%

 

4.77%

 

Jackson Manor Apartments

 

 

5,859,141

 

 

(6)

 

 

2023

 

Variable

 

Yes

 

3.88%

 

1.29%

 

5.17%

 

Trust 2021-XF2926 (8)

 

 

70,402,736

 

 

(6)

 

 

2024

 

Variable

 

No

 

4.57%

 

0.89%

 

5.46%

 

Trust 2021-XF2939 (9)

 

 

7,341,558

 

 

(6)

 

 

2024

 

Variable

 

No

 

4.57%

 

1.16%

 

5.73%

 

Scharbauer Flats GIL

 

 

36,000,000

 

 

(6)

 

 

2024

 

Variable

 

Yes

 

3.88%

 

0.91%

 

4.79%

 

Oasis at Twin Lakes GIL

 

 

30,600,000

 

 

(6)

 

 

2024

 

Variable

 

Yes

 

3.88%

 

0.91%

 

4.79%

 

Centennial Crossing GIL

 

 

29,772,000

 

 

(6)

 

 

2024

 

Variable

 

Yes

 

3.88%

 

0.91%

 

4.79%

 

Residency at the Mayer - Series A

 

 

21,450,000

 

 

(6)

 

 

2024

 

Variable

 

Yes

 

3.86%

 

1.19%

 

5.05%

 

Montecito at Williams Ranch - Series A

 

 

6,872,074

 

 

(6)

 

 

2025

 

Variable

 

Yes

 

3.62%

 

1.17%

 

4.79%

 

Vineyard Gardens - Series A

 

 

3,592,692

 

 

(6)

 

 

2025

 

Variable

 

Yes

 

3.67%

 

1.17%

 

4.84%

 

The Park at Sondrio - Series 2022A

 

 

30,354,275

 

 

(6)

 

 

2025

 

Variable

 

Yes

 

3.88%

 

1.43%

 

5.31%

 

The Park at Vietti - Series 2022A

 

 

21,489,569

 

 

(6)

 

 

2025

 

Variable

 

Yes

 

3.88%

 

1.43%

 

5.31%

 

Avistar at Copperfield - Series A

 

 

11,501,641

 

 

(6)

 

 

2025

 

Variable

 

Yes

 

3.80%

 

1.67%

 

5.47%

 

Avistar at Wilcrest - Series A

 

 

4,350,640

 

 

(6)

 

 

2025

 

Variable

 

Yes

 

3.88%

 

1.67%

 

5.55%

 

Residency at the Entrepreneur MRBs

 

 

16,513,817

 

 

(6)

 

 

2025

 

Variable

 

No

 

4.57%

 

1.18%

 

5.75%

 

Legacy Commons at Signal Hills & Hilltop at Signal Hills GILs

 

 

53,160,000

 

 

(6)

 

 

2025

 

Variable

 

Yes

 

3.88%

 

0.91%

 

4.79%

 

Osprey Village GIL

 

 

32,905,000

 

 

(6)

 

 

2025

 

Variable

 

Yes

 

3.88%

 

1.19%

 

5.07%

 

Avistar at Wood Hollow - Series A

 

 

33,092,580

 

 

(6)

 

 

2027

 

Variable

 

Yes

 

3.88%

 

1.44%

 

5.32%

 

Live 929

 

 

53,092,000

 

 

(6)

 

 

2027

 

Variable

 

Yes

 

3.88%

 

1.18%

 

5.06%

 

Barclays Capital Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust 2021-XF2953 (10)

 

 

46,548,777

 

 

 

-

 

 

2023

 

Variable

 

No

 

4.42%

 

1.27%

 

5.69%

 

Poppy Grove I GIL

 

 

6,258,486

 

 

 

-

 

 

2023

 

Variable

 

Yes

 

3.81%

 

1.25%

 

5.06%

 

Poppy Grove II GIL

 

 

3,614,486

 

 

 

-

 

 

2023

 

Variable

 

Yes

 

3.81%

 

1.25%

 

5.06%

 

Poppy Grove III GIL

 

 

6,821,486

 

 

 

-

 

 

2023

 

Variable

 

Yes

 

3.81%

 

1.25%

 

5.06%

 

Subtotal/Weighed Average Period End Rate

 

 

619,060,166

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5.19%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term TOB Trust Securitizations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Morgan Stanley:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Village at Avalon

 

$

12,831,009

 

 

 

-

 

 

2024

 

Fixed

 

Yes

 

N/A

 

N/A

 

1.98%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt Financings

 

$

1,058,903,952

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(1)
The tax treatment of interest paid to the trust senior trust securities is dependent on the structure of the trust financing. Debt financings designated as “tax-exempt” in the table above are such that the Partnership expects and believes the interest on the senior securities is exempt from federal income taxes, which typically requires a lower remarketing rate to place the senior securities at each weekly reset.
(2)
The remarketing senior securities rate is the market interest rate determined by the remarketing agent to ensure all senior securities tendered by holder for weekly remarketing are purchased at par.
(3)
Facility fees have a variable component.
(4)
The M45 TEBS has an initial interest rate of 3.82% through July 31, 2023. From August 1, 2023 through the stated maturity date, the interest rate is 4.39%. These rates are inclusive of credit enhancement fees payable to Freddie Mac.
(5)
The Secured Notes have a stated rate of 9.25% plus SOFR which resets monthly. The Partnership has entered into a total return swap transaction with the Secured Notes as the reference security and a notional amount totaling the outstanding principal on the Secured Notes. The total return swap effectively nets down the interest rate on the Secured Notes. Considering the effect of the total return swap, the effective net interest rate of the Secured Notes is 7.80% as of December 31, 2022. See Note 18 for further information on the total return swap.
(6)
The Partnership has restricted cash totaling approximately $38,000 related to its total net position with Mizuho Capital Markets.
(7)
The TOB trust is securitized by the Scharbauer Flats Apartments and Centennial Crossings property loans.
(8)
The TOB trust is securitized by the Legacy Commons at Signal Hills property loan, Hilltop at Signal Hills property loan, Hope on Avalon
taxable GIL, and the Oasis at Twin Lakes property loan.
(9)
The TOB trust is securitized by the Residency at the Mayer taxable MRB, Ocotillo Springs taxable MRB, and Osprey Village property loan.
(10)
The TOB trust is securitized by the Willow Place GIL and property loan, Lutheran Gardens MRB, Magnolia Heights GIL and property loan, Poppy Grove I taxable GIL, Poppy Grove II taxable GIL and Poppy Grove III taxable GIL.
Summary of TOB Trust Financings

The following is a summary of the new TOB trust financings that were entered into during the six months ended June 30, 2023:

 

TOB Trusts Securitization

 

Initial TOB
Trust Financing

 

 

Stated Maturity

 

Interest Rate Type

 

Tax-Exempt Interest on Senior Securities

 

Facility Fees

Residency at Empire MRB

 

$

14,400,000

 

 

January 2026

 

Variable

 

Yes

 

1.42%

Windsor Shores MRB

 

 

17,236,000

 

 

January 2026

 

Variable

 

Yes

 

1.44%

SoLa Impact Opportunity Zone Fund

 

 

27,300,000

 

 

December 2024

 

Variable

 

No

 

1.78%

The Ivy Apartments MRB

 

 

24,400,000

 

 

February 2026

 

Variable

 

Yes

 

1.44%

Village at Hanford Square MRB

 

 

7,800,000

 

 

May 2026

 

Variable

 

Yes

 

1.44%

MaryAlice Circle MRB

 

 

4,720,000

 

 

May 2026

 

Variable

 

Yes

 

1.44%

Meadow Valley MRB

 

 

8,606,000

 

 

June 2026

 

Variable

 

Yes

 

1.44%

Village Point MRB

 

 

18,400,000

 

 

June 2024

 

Variable

 

Yes

 

1.61%

Total TOB Trust Financings

 

$

122,862,000

 

 

 

 

 

 

 

 

 
Summary of TOB Trust Financings Were Repaid in Connection With Redemption or Sale of Underlying Assets

The following is a summary of the debt financing principal payments made in connection with the redemption or sale of underlying assets during the six months ended June 30, 2023:

Debt Financing

 

Debt Facility

 

Month

 

Paydown Applied

 

Greens of Pine Glen

 

M31 TEBS

 

February 2023

 

$

7,579,000

 

Oasis at Twin Lakes GIL

 

TOB Trust

 

June 2023

 

 

30,600,000

 

Trust 2021-XF2926 - Oasis at Twin Lakes property loan

 

TOB Trust

 

June 2023

 

 

21,600,000

 

 

 

 

 

 

 

$

59,779,000

 
during the six months ended June 30, 2022:

Debt Financing

 

Debt Facility

 

Month

 

Paydown Applied

 

Live 929 Apartments - 2014 Series A

 

TOB Trust

 

January 2022

 

$

31,565,000

 

Ohio Properties - Series A

 

M24 TEBS

 

March 2022

 

 

13,544,000

 

Bridle Ridge

 

M24 TEBS

 

April 2022

 

 

7,100,000

 

Gateway Village

 

TOB Trust

 

May 2022

 

 

2,183,000

 

Lynnhaven Apartments

 

TOB Trust

 

May 2022

 

 

2,896,000

 

 

 

 

 

 

 

$

57,288,000

 
Schedule of Contractual Maturities of Borrowings

The Partnership’s contractual maturities of borrowings as of June 30, 2023 for the twelve-month periods ending December 31st for the next five years and thereafter are as follows:

Remainder of 2023

 

$

75,188,447

 

2024

 

 

378,483,151

 

2025

 

 

307,645,675

 

2026

 

 

81,154,863

 

2027

 

 

88,267,325

 

Thereafter

 

 

225,691,693

 

Total

 

 

1,156,431,154

 

Unamortized deferred financing costs and debt premium

 

 

(2,401,991

)

Total debt financing, net

 

$

1,154,029,163