MILWAUKEE — NewPoint Real Estate Capital has provided $20.6 million in construction financing for the development of Michigan Street Commons, a 99-unit affordable housing community in Milwaukee. Kenosha-based developer Bear Real Estate Group is developing the project, which is scheduled for completion in spring 2024.
The loan was arranged by Cesar Diaz, a managing director at NewPoint, and structured as a NewPoint Impact 4 percent tax-exempt bond financing. Three series of bonds were issued by the Wisconsin Housing and Economic Development Authority. Raymond James was the LIHTC equity syndicator. Launched in August 2022, NewPoint Impact is an affordable housing lending platform that pairs private capital with government-subsidized products to create financing opportunities for affordable developments.
Michigan Street Commons will be located on the southwest corner of West Michigan Street and North 10th Street. The five-story mid-rise property will contain 48 one-bedroom units and 51 two-bedroom units. Approximately 30 percent of the units will be affordable at 50 percent of area median income (AMI), 40 percent will be affordable at 60 percent AMI and the remaining 30 percent will be affordable at 70 percent AMI.