Nitya Unlocks Value through a $218 Million Refinancing

Successful execution of the tax exemption program and long-term fixed-rate refinancing of the underlying assets leads to the payoff

Nitya Capital, LLC an international real estate investment firm headquartered in Houston, continues to successfully navigate the challenging capital market by closing a refinancing of $218 million, paying off loans across seven assets. This accomplishment further strengthens lenders’ trust and confidence in Nitya’s execution capabilities, both operational and financial.

The paid-off loans were across six multifamily assets, of which five were in Houston, TX—Barcelona, Eden Pointe, Establishment, Hunters Chase, and Lakeside Forest—one in Dallas, TX—The Muse—and one student housing asset in College Station, TX—Campus Village.

As an impact investor through its non-profit arm, Karya Kares, Nitya continues its ESG journey by bringing these assets under income-restricted affordable housing. One of the benefits of being an affordable housing community is property tax exemption for the value created for low-income households. 60% of Nitya’s current portfolio falls under affordable housing.

This tax exemption allowed Nitya to refinance the assets into new loans from Argentic Real Estate Finance 2 LLC. The 7-asset portfolio was appraised at $356 million, vs the original purchase price of $254.6 million, reflecting a 40% value enhancement.

The seven loan payoffs were made to multiple large lenders such as Fannie Mae, Freddie Mac, Morgan Stanley, and MetLife, further solidifying Nitya’s relationship in the lending world.

“Nitya’s vision has always been to create a win-win model - we want to provide a clean, safe, and convenient living community to low-income families of America while also generating above-market returns for our investors. This transaction is a testament to that vision,” stated Swapnil Agarwal, Founder and CEO of Nitya Capital.