Custom Tailored Solutions for Sponsors and Capital Providers
Affordable Housing Development
Multi-Layered Financing Fuels Developer Growth
Scaling an affordable housing development business can be challenging. We work with a range of developers and operators on capital strategies to meet your growth goals, whether you are taking on more projects, expanding geographically, acquiring other firms, or monetizing your portfolio.
Scaling an affordable housing development business can be challenging. We work with a range of developers and operators on capital strategies to meet your growth goals, whether you are taking on more projects, expanding geographically, acquiring other firms, or monetizing your portfolio.
We act as chief financing architect. Think of us as the Capital Stack Quarterback, where we both set and execute the game plan with our clients. We do this for affordable housing developers essentially in three discrete categories: Manufactured Housing Communities (MHC), Build-to-Rent (BTR), and Single-Family Rental (SFR).
The affordable housing gap continues to widen, and financing remains fragmented. There are hundreds of capital providers operating independently, each with different requirements. Developers face this financing patchwork which makes raising capital a chore. At the same time, capital providers often experience a market heavily dominated by regional firms with deal flow that typically lacks standardization and institutional quality underwriting.
We streamline this complexity for our clients, whether small, locally focused firms, regional players, or national developers. Seeking to secure the layers of capital required for your current and future projects, Carofin designs an integrated financing approach. We ensure every tranche has the best-fitting capital source, aligning with your business plan. We want to position you for long-term success, whether preparing for an eventual IPO, pursuing M&A opportunities, or simply holding properties for the long term.
Applying Our Capabilities to Capital Stack Solutions
Every developer needs capital at each stage of a project’s development, as well as to fund the sponsor company’s growth throughout its lifecycle, from a small, locally focused operation to a midsize regional player, and ultimately to a large, nationally focused private developer positioned for IPO readiness or M&A opportunities.
Carofin’s real estate investment group combines deep expertise in real estate capital markets with investment banking, broker-dealer distribution capabilities, and M&A know-how. Bringing an entrepreneurial mindset along with institutional quality execution, we leverage our proprietary technology to deliver high-quality executions for our affordable housing developers and provide risk-mitigated, qualified affordable housing investments to capital providers and investors.
Access to All Types of Capital
Our extensive relationships span the full capital spectrum, enabling us to seek to fill each tranche with the optimal source of capital for the right transaction. The potential tranches of capital could include construction and bridge debt, sub- and mezzanine debt (including CDFIs and HFAs), and institutional programmatic JV and passive LP equity.
Working closely with our syndication team, our investment bankers brings real-time investor insights while developing each element of the financing structure. This gives us the flexibility to secure a single-source solution where appropriate or unlock fragmented pools of capital by syndicating through our broker-dealer platform.
For capital providers, Carofin serves as a value-added resource as well.
Construction and
Bridge Debt Lenders
What We Do
Our goal is to deliver institutional-quality underwriting and a roadmap toward fully capitalized projects with the subordinated debt and equity tranches aligned.
Benefit
This reduces the execution risk and instills confidence that the project will be completed and perform as projected.
What We Do
We bring pre-vetted developers and their projects where subordinated debt fills a critical gap in the capital structure.
Benefit
This increases deployment velocity and impact by ensuring projects are already structured with senior debt and equity in place, mitigating execution risk.
Mission-Driven and
Municipal Capital Providers
Equity Investors
What We Do
For institutional JV investors, we offer scalable, programmatic relationships with developers. For passive LP investors, we curate our offerings into affordable housing projects suitable for institutions.
Benefit
We provide institutional investors and passive LP investors with consistent deal flow underwritten at institutional-quality standards.
How We Work
We are selective about the offerings we take to market. Every engagement begins with thorough due diligence to ensure we present only the most compelling opportunities to capital providers.
Working closely with your team, we tailor a capital stack that addresses cash flow, liquidity, and execution risk, as well as longer-term goals. Packaged to institutional-quality standards, our marketing materials carefully describe both the sponsor and the project. They are supported by third-party market research, tax-benefit analysis, and other domain expertise that may be required.
Each offering tells your story, highlighting the project, your competitive position, capital plan, and risk management profile. Once our underwriting is complete, our investment banking team seeks appropriate single-source financing providers for each tranche. Meanwhile, our sales team launches targeted outreach via our broker-dealer platform, investor presentations, email campaigns, and real-time tracking. This effectively secures the capital on a timeline that your projects and business need to grow. Post-closing, we always encourage regular investor updates and ongoing communication with investors and lenders.
We combine real estate capital markets experience with investment banking and syndication capabilities along with practical M&A know-how, delivering strong outcomes for developers.
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