Dealmaker: Bellwether Enterprise Closes $17M for Georgia Multifamily Housing

Bellwether Enterprise Real Estate Capital LLC, Cleveland, closed two loans totaling $17.4 million for affordable multifamily housing communities in Newnan and Thomaston, Ga.

Jon Killough, Executive Vice President based in the company’s Alabama office, and John Roberts, a Vice President based in Dallas, originated the loans for Envolve Communities LLC, Montgomery, Ala. The transactions represented the 14th and 15th loans Bellwether has originated for Envolve over the past five years.

The deals included:

–Eastgate Apartments in Newnan, Ga., which received a $9.4 million HUD 221(d)(4) rehabilitation loan. The property at 11 Dowdell Street comprises nine two-story residential buildings with 96 units total. The rehabilitation will total nearly $55,000 per unit and provide dishwashers, microwaves and vinyl plank flooring.

The loan structure included short-term tax-exempt cash-collateralized bonds issued by the Thomaston Housing Authority and 4 percent Low-Income Housing Tax Credits administered by the Georgia Department of Housing and Community Affairs and syndicated by Hunt Capital Partners, Los Angeles. All units are restricted to households earning below 60 percent or less of area median income and are covered by Section 8 Project-Based Rental Assistance.

–Farview Apartments at 300 Avenue F in Thomaston, Ga., received a $7.9 million HUD 221(d)(4) rehabilitation loan. The loan structure also included short-term tax-exempt cash-collateralized bonds issued by the Thomaston Housing Authority and 4 percent LIHTCs syndicated by Hunt Capital Partners.

The tax-exempt bond issue totaled $17 million for the two properties located in different municipalities but financed under one bond issue underwritten by Stifel, Nicolaus & Cos.’ Montgomery, Ala. office.

“As in so many communities across the country, there is a significant need in Georgia for quality affordable housing,” said Killough.