Dealmaker: Bellwether Enterprise Secures $79M

Bellwether Enterprise Real Estate Capital, Cleveland, secured $79.4 million for office, multifamily and industrial assets in New York, California and Illinois.

In Uniondale, N.Y., the firm arranged a $55 million acquisition loan for the Nassau County Department of Health and Human Services single-tenant office building. Bellwether Enterprise Executive Vice President C. Cooper Willis originated the loan for Salus Government Properties, Charlotte, N.C.

Morgan Stanley, New York, funded the loan.

Constructed in 1986, the property includes 217,000 square feet of Class A office space. Located on 7.7 acres at 60 Charles Lindbergh Boulevard, the building has two floors and a concourse level. Nassau County, the building’s sole tenant, renewed its lease last year.

Bellwether also closed two deals totaling more than $24 million for an affordable multifamily property and an industrial property. The deals included a $15.4 million affordable housing loan for Del Nido Apartments in Santa Rosa, Calif. Bellwether Enterprise Senior Vice President Jim Gillespie arranged a 7/4 adjustable-rate mortgage through Fannie Mae, Washington, D.C., for sponsor Eden Housing. The loan allowed Eden Housing to refinance its existing short-term acquisition loans and maintain flexible prepayment options.

Constructed between 1969 and 1971, Del Nido Apartments includes 20 single-story buildings on 9.6 acres.

In Illinois, the Chicago Area Bulk Warehouse/Distribution Building received a $9 million refinance loan from Thrivent Financial for Lutherans, Minneapolis. The 700,000-square-foot cross-dock facility dates to the late 1990s and has 30-foot minimum clear height and 120 truck courts.

Bellwether Enterprise’s new Los Angeles office arranged the refinancing. Executive Vice President Shelley Magoffin and Vice President Max Sauerman worked with the Los Angeles-based owner-user to refinance the existing loan almost three years prior to maturity. The existing loan was subject to a yield maintenance prepayment premium, but Magoffin and Sauerman saw that Thrivent could offer a very low interest rate that allowed the borrower to recapture the prepayment premium in less than two years, lower the annual debt service and keep the same amortization schedule so the borrower will own the property free and clear at the same time as the existing loan.

Magoffin noted that the rate for the non-recourse loan was locked at application and allowed the borrower to come back for secondary financing.