Dealmaker: Bellwether Enterprise Closes $29M for Multifamily

Bellwether Enterprise Real Estate Capital, Cleveland, closed $21.4 million in loans to preserve a five-property affordable multifamily portfolio totaling 370 units in the San Francisco Bay area.

“The lack of affordable homes is detrimental to Bay Area communities and it is only becoming more challenging for low-income residents to keep up with rising rents,” said Bellwether Enterprise President Ned Huffman.

The five individual loans will go toward preserving the units and allow the owners to pay for deferred maintenance. The subject properties included:

–Brentwood Park Apartments ($6.7 million) at 160 Sycamore Avenue and Brentwood Garden Apartments ($3.7 million) at 180 Sycamore Avenue, both in Brentwood, Calif.;
–Gilroy Garden Apartments ($4.9 million) at 9250 Wren Avenue in Gilroy, Calif.;
–Pittsburg Park Apartments ($4.1 million) at 2179 Crestview Drive in Pittsburg, Calif.; and
–Fairfield Vista Apartments ($2 million) at 201 Pennsylvania Avenue in Fairfield, Calif.

Bellwether Enterprise Vice President John Roberts arranged the loans with Freddie Mac, McLean, Va. The 15-year fixed-rate Freddie Mac Targeted Affordable Housing Preservation loans priced lower than the previous rate on the assets and allow for interest-only payments for the first three years.

Bellwether Enterprise also secured a $7.7 million permanent loan and construction loan refinancing for Trevi Villas Apartments in North Hollywood, Calif.

Mack Mower, Associate Vice President in the firm’s Los Angeles office, arranged the loan through Nationwide Real Estate Investments, Columbus, Ohio. The 10-year loan included one year of interest-only payments followed by a 30-year amortization schedule and included a $500,000 cash-out to the borrower after construction debt and closing costs were paid.

Trevi Villas Apartments includes 27 two-bedroom/two-bath and three-bedroom/two-bath units.