Dealmaker: Bellwether Enterprise Closes $64M for Affordable Multifamily

Bellwether Enterprise Real Estate Capital LLC, Cleveland, closed $63.9 million for affordable multifamily communities in Alabama and Texas.

Kinsey Cove illustration courtesy Bellwether Enterprise

The firm closed an $11.5 HUD-insured loan for the rehabilitation of Capstone at Kinsey Cove, an apartment community in Dothan, Ala. The loan provided funding for the public housing property as part of HUD’s Rental Assistance Demonstration program, which allows housing authorities to access private capital to meet capital needs while also protecting long-term affordability.

Jon Killough, Executive Vice President in Bellwether’s Alabama office, originated the loan for an affiliate of The Banyan Foundation, Vestavia, Ala. He said financing will help preserve 214 affordable and workforce housing units.

The deal represented the partial conversion of the Housing Authority of the City of Dothan’s housing stock under RAD. In addition to the HUD 221(d)(4) loan originated by Bellwether Enterprise, the transaction’s capital stack included 4% Low-Income Housing Tax Credits syndicated by Raymond James Tax Credit Funds and subordinate loans provided by the Housing Authority of the City of Dothan.

Bellwether Enterprise also closed two loans totaling $52.4 million for affordable multifamily housing communities in Austin and San Antonio, Texas. Phil Melton, Executive Vice President and National Director of Affordable and FHA Production originated both loans from Bellwether’s Dallas office.

Melton’s deals included:

–Waters at Bluff Springs in Austin, which received a $33.9 million Freddie Mac Targeted Affordable Housing refinance loan. The loan provided a 12-year fixed rate.

–Waters at Elm Creek in San Antonio, which received an $18.5 million, 15-year Freddie Mac TAH refinance loan.