Dealmaker: Bellwether Enterprise Closes $21M Affordable Housing Deal

Bellwether Enterprise Real Estate Capital LLC, Cleveland, closed a $20.5 million loan to rehabilitate and preserve affordability of nine multifamily properties in West Town and Humboldt Park in Chicago.

Victory Apartments

Victor Agusta, Executive Vice President at Bellwether Enterprise, arranged the Federal Housing Administration loan for borrower Bickerdike Redevelopment Corp., Chicago.

Victory Apartments–named after the successful campaign to push Illinois to fund its first affordable housing development in the area–includes 107 affordable units located close to outdoor recreational areas and within walking distance to public transportation and local services.

The rehabilitation was financed with tax-exempt bonds, a 4 percent Low-Income Housing Tax Credit, Illinois Donation Tax Credits and a subordinate mortgage from the Illinois Housing Development Authority. The existing Section 8 Housing Assistance Payments contract was renewed for 20 years under the Rental Assistance Demonstration program, which played a part in adjusting the subsidized rents to levels that can support the renovations.