Dealmaker: Bellwether Enterprise Closes $35M in Loan Deals for Affordable Housing
Bellwether Enterprise Real Estate Capital LLC, Cleveland, closed three loans totaling $35.3 million for affordable multifamily housing in Kingsport, Tenn., Baltimore and Indianapolis.
Victor Agusta, Executive Vice President in Bellwether Enterprise’s Raleigh, N.C. office, originated the loans for Catholic Charities of Baltimore, Flaherty & Collins in Indianapolis and Pennrose Properties in Kingsport, respectively.
“As costs of living continue to rise, it is essential to preserve existing affordable homes, and particularly those that serve vulnerable populations like seniors and the lowest income families,” Agusta said.
The subject properties included:
The Kingsport Rental Assistance Demonstration Portfolio, which received a $14.3 million Fannie Mae Tax-Exempt Bond Collateral loan to preserve an affordable housing portfolio for the Kingsport Housing Development Authority and affordable housing developer Pennrose Properties. The Kingsport RAD Portfolio contains 381 units ranging from one- to five-bedroom units reserved for very low-income households. Through the RAD process, a new Section 8 Housing Assistance Payments contract was obtained for 173 units, while 193 units are supported through a long-term project-based voucher contract. Renovation work throughout the portfolio was funded with 4% Low-Income Housing Tax Credit tax-exempt bonds and secondary debt from local sources.
DePaul House and Joachim House in Baltimore received an $11.4 million Federal Housing Administration-insured loan to enable Catholic Charities of Baltimore to refinance these two adjacent affordable housing developments for seniors and invest $7 million in capital improvements. The two properties at 3300 and 3320 Benson Avenue total 199 units, including 192 one-bedroom units and seven two-bedroom units.
As part of the transaction, DePaul House renewed its Section 8 contract and Joachim House received a new Section 8 Housing Assistance Payments contract through the recently established Rental Assistance Demonstration notice for the Project Rental Assistance Contract program, which allows Section 202 properties to be converted to Section 8 to maintain affordability and nonprofit ownership over the long term.
Amber Woods II in Indianapolis received a $9.6 million Freddie Mac Tax-Exempt Loan to enable Flaherty & Collins to improve and preserve the affordability of 200 apartments in partnership with local nonprofit organization Pathway Resource Center. Amber Woods II contains one-, two- and three-bedroom units reserved for very low-income households. Rents are subsidized through a Section 8 HAP contract that was renewed for 20 years as part of the transaction.
