On Friday, June 20, Arc70 Capital closed Arc70 2025-1, a private-label securitization of $175.3 million of 4% affordable housing bonds issued through the National Finance Authority (“2025-1 Securitization”). The 2025-1 Securitization financed a pool of bonds associated with 13 affordable housing properties in 10 states including, California, Texas, and New York. All of the properties operate under the federal low-income housing tax credit program and seven properties have project-based Section 8 rental subsidies. In total, these properties provide over 1,500 units affordable to households at 60% of area median income or below at an average rent that is 34% less than typical market rents. The 2025-1 Securitization consists of three tranches: Class A-1 certificates rated AA- (S&P), Class A-2 certificates rated BBB+ (S&P), and first-loss Class B certificates retained by Arc70.
“We are excited to continue to partner with sophisticated municipal investors with our most recent securitization,” said Denny Hou, co-founder of Arc70. “The closing of this transaction will drive a meaningful return of capital to our limited partners and support the development of affordable housing.”
“This transaction further solidifies Arc70’s presence as a consistent, highly-regarded issuer in the private-label, affordable housing securitization market,” said Matt Engler, Managing Director, Head of Capital Markets. “Thank you to our underwriting syndicate led by Wells Fargo, our counsel Kutak Rock, underwriter’s counsel Orrick, and Wilmington Bank as trustee.”
