Bellwether Enterprise Real Estate Capital LLC (Bellwether Enterprise), the commercial and multifamily mortgage banking subsidiary of Enterprise Community Investment Inc. (Enterprise), announced the projected closing of over $430 million in loans for over 24 affordable housing properties across the country in Q4, 2017. In the month of October alone, the Affordable Housing team closed more than $160 million of this total number. Building on Bellwether Enterprise’s long-standing expertise in the affordable lending space, this high volume of deals further demonstrates the company’s deep commitment to preserving and rehabilitating affordable housing properties for families in need across the nation.
“With mounting threats to our country’s affordable housing stock, the Bellwether Enterprise team is more committed than ever before to bringing our flexible financing solutions to our country’s most vulnerable communities,” said Ned Huffman, President of Bellwether Enterprise. “Throughout Q4, our affordable lending team truly outdid themselves and worked in tandem to effectively preserve over 3,500 units of affordable housing. This not only highlights our leadership in the affordable lending space, it directly benefits thousands of families who currently, or will one day, rely on these properties for a stable place to live.”
- Aeon Towers Portfolio, a fixed-rate preservation acquisition loan for 10 affordable housing properties located in the Minneapolis–Saint Paul metropolitan region in Minnesota. Combined, the properties feature 768 units and are located across four cities—Bloomington, New Hope, St. Paul, and Brooklyn Center.
Phil Melton, Executive Vice President and National Director of Affordable Lending and FHA Lending at Bellwether Enterprise, arranged the deal using Freddie Mac THA as the lender. Bellwether Enterprise facilitated the acquisition using two tranches of the Freddie Mac fixed-rate mortgage pools. The first, a joint venture between Aeon, Enterprise Opportunity Fund, and BMO Harris Bank, included six properties and was financed by individual seven-year, fixed-rate loans. The second, a joint venture between Aeon and the Greater Minnesota Housing Fund, included four properties and was financed by individual 10-year, fixed-rate loans.
- Appling Lakes at Cordova Club, a Fannie Mae MBS acquisition loan for a workforce housing property in Cordova, Tennessee. Located outside Memphis, the 312-unit property is situated across 26 acres and includes 17 two- and three-story residential buildings and a clubhouse. The property also features top-notch amenities including a fitness center, lighted tennis court, sand volleyball court, pool, business center, and clubhouse with a full kitchen.
Phil Melton and John Roberts, Vice President of Bellwether Enterprise in the Dallas office, arranged the seven-year fixed-rate financing using Fannie Mae as the lender. The loan features interest-only for the first year—enabling the borrower to take advantage of reduced debt service obligations while completing extensive improvements to unit interior finishes and amenity refurbishments.
- Building 9 South (Mercy Magnuson Place), a Freddie Mac Forward Tax Exempt Loan (TEL) for the gut renovation of an affordable housing property in Seattle, Washington. The project entails the adaptive re-use and rehabilitation of a historically-significant naval barracks into a 148-unit affordable apartment building. The project will include amenities such as a health center, daycare center, and computer lab. The building’s exterior and key historic interior elements will be preserved, and energy efficiency will be prioritized during reconstruction.
Jim Gillespie, Senior Vice President of Bellwether Enterprise in the New York office originated and structured the financing using Freddie Mac as the permanent lender. Enterprise Community Investment, Inc, the tax credit equity syndication arm affiliated with Bellwether Enterprise, will provide the tax credit equity on the project. The Freddie Mac TEL loan will finance a 108-unit portion of the total project, while a separate nine percent low-income housing tax credit (LIHTC) transaction will finance the Building 9 North phase. The permanent funding sources for the Building 9 South phase include the Freddie Mac permanent loan, four percent LIHTC and historic tax credit equity, three soft subordinate loans, a deferred developer fee, and owner equity.
- The Savannah at Gateway, a Fannie Mae MBS 15-year fixed-rate loan for an affordable housing property in Plano, Texas. The senior community is a LIHTC property that features 292 units reserved for tenants aged 55 or older. Located near the intersection of Shiloh and Renner roads, the property includes a clubhouse, fitness center, community kitchen, and recreation room. Individual apartments also feature balconies, high ceilings, and efficient appliances.
John Roberts and Jon Killough, Senior Vice President of Bellwether Enterprise in the Montgomery office, arranged the loan using Fannie Mae as the lender. The financing will pay off existing bonds used for construction and help ensure the property remains an affordable place for moderate- to low-income tenants to live.
“The need for affordable housing is growing at a rapid rate across the country—yet supply continues to dwindle,” said Phil Melton. “I’m proud of the entire Bellwether Enterprise Affordable Housing team for their dedicated efforts to address this alarming problem, which affects over 11 million Americans who are forced to spend more than 50 percent of their income on rent. By providing financing to borrowers that are committed to creating, preserving, enhancing, or acquiring affordable housing properties, we’re helping to ensure that nationwide, communities in need have a place to call home.”