Dealmaker: BWE Secures $20M for Indiana Properties

(Image of Hamilton Place courtesy of BWE)

BWE, Cleveland, secured $19.68 million in financing to acquire and rehabilitate three affordable housing developments in rural Indiana.

Lundat Kassa, Vice President in BWE’s Washington, D.C., office, and Bob Morton, Senior Vice President and Director of RHS Programs in BWE’s LaPorte, Ind., office, originated the financing on behalf of Vita Investment Holdings.

The financing came through two loans, including a construction loan sourced from Fifth Third Bank.

BWE also secured a $17,097,570 loan through the USDA 538 Forward Permanent Loan program, which features a 40-year amortization period and a very competitive interest rate and is non-recourse to the borrower. It also features no interest rate risk and the ability to refinance or modify the interest rate if rates decline.

Additionally, the developer utilized 4% Low-Income Housing Tax Credits to finance the project.

The three properties include: Hamilton Place, a 54-unit Property in Arcadia, Madison Cottage of Rensselaer, with 71 units, and Madison Cottage of Benton County, with 51 units.