David Leopold.
NEW YORK CITY—Berkadia is going boldly into the affordable housing sector to close the gap between supply and demand lending for this critically needed asset type. The firm is pulling together different business lines such as tax equities, sales and lending to invest in the sector, and has hired affordable housing vet David Leopold as senior vice president and head of affordable housing to lead the strategy.
"The need for affordable housing spans the 50 states and every territory, and the fact that Berkadia is willing to invest in that need says a lot," Leopold tells GlobeSt.com.
The appointment of Leopold is the most recent hire of a slew of talent to join Berkadia to bulk-up its affordable housing platform and is in addition to new strategic plans to identify opportunities to lend, identify equity sources and support the development and preservation of affordable housing.
Leopold joins Berkadia from Freddie Mac where he served as vice president for targeted affordable sales and investments for the firm's multifamily arm. He grew Freddie Mac's annual affordable housing production from an estimated $2 billion in 2014 to $9 billion to date, comprised of mortgage originations and structured finance.
All the while, he led the organization's reentry into the tax credit and equity market, acting as the primary contact with housing finance agencies, municipalities and community-based organizations for Freddie Mac Multifamily's affordable housing and community development platform.
"This is a space I know well and have dedicated my career to furthering affordable housing," Leopold said. "It's a niche within CRE that requires technical expertise to understand public policy and maximize subsidy resources."
Consideration of costs to preserve affordable housing is also one area the firm is tackling. Operators working to preserve affordable housing and secure funding are far outweighed by a lack of resources for capital funding, according to Leopold. "It's a competitive process to allocate those dollars," he said.
Berkadia recently revealed another big initiative, as GlobeSt.com recently reported, with the launch of BeEngaged, a program within the firm's Innovation Division which mentors startups in the commercial real estate industry.
The new launch provides startups with strategic counsel, resources and an environment to test and grow new concepts. "We're looking for 'disruptors' in the industry who are asking the tough questions and challenging commercial real estate's status quo to create innovative, game-changing solutions," said to Bryce Nyberg, who is director of Transformation and Innovation at Berkadia.
"Technology's impact on the industry has only begun, and by collaborating with these startups and cultivating emerging companies, Berkadia has set its sights on what's next in efficiency and client service."
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Mariah Brown
Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.
