Dealmaker: BWE Secures $40M to Refinance, Preserve Affordable Housing

(St. Charles House, Pikesville, Md.)

Bellwether Enterprise Real Estate Capital LLC, Cleveland, closed five loan deals totaling $40.1 million to refinance and preserve two affordable housing communities in Mt. Vernon, Texas, and Silver Spring, Md., as well as three affordable senior living communities in Nashville, Baltimore and Pikesville, Md.

Jon Killough, Executive Vice President in BWE’s Montgomery, Ala., office, and John Roberts, Vice President in the firm’s Dallas office, originated the Mt. Vernon and Nashville deals and Victor Agusta, Executive Vice President in BWE’s Raleigh, N.C., office, originated the Maryland loans.

The properties included:

•             Nashville Christian Towers (101 Foothill Court, Nashville), a $21 million bridge loan originated for Envolve Communities to acquire and finance a 175-unit affordable seniors housing development. Envolve plans to redevelop the property using proceeds from a 4% Low-Income Housing Tax Credit execution coupled with tax-exempt bonds. The bridge loan will help position the property for renovation and the planned LIHTC execution. The 12-month bridge loan included a 12-month extension option and interest-only payments during the term of the loan.

•             Logan’s Pointe (101 Logan’s Pointe Drive, Mt. Vernon, Texas), a $7.6 million direct bond purchase originated for Envolve Communities to finance acquisition, rehabilitation and permanent financing of a 100-unit LIHTC garden-style apartment community. The direct bond purchase included a 17-year fixed-rate term with two years of interest-only payments during the stabilization period and a 40-year amortization.

•             515 Thayer (515 Thayer Avenue, Silver Spring, Md.), a $6.7 million Freddie Mac tax-exempt loan originated for Montgomery Housing Partnership to finance the renovation and preservation of a 55-unit affordable housing property. The community has 48 apartments affordable to families earning up 50% and 60% of area median income as well as seven market-rate units. Enterprise Community Partners, Columbia, Md., provided $5.3 million of LIHTC equity to the project, which also received funding from the State of Maryland and Montgomery County.

•             St. Charles House (11 North Church Lane, Pikesville, Md.), a $1.7 million FHA 223(f) loan originated for Catholic Charities of Baltimore to refinance and preserve a 24-unit Section 202 senior housing community. All units will be affordable to seniors earning up to 50% of AMI. In addition to providing financing to make necessary capital improvements to the property, the Housing Assistance Payment contracts will also be renewed for 20 years. The loan included a 35-year term with a 35-year amortization.

•             Coursey Station (200 1st Avenue, Baltimore), a $3.1 million FHA 223(f) loan originated for Catholic Charities of Baltimore to refinance and preserve a 49-unit Section 202 senior housing property. The apartments will be affordable to seniors earning up to 50% of AMI. The refinancing provided for capital improvements and allowed for the extension of the HAP contracts for an additional 20 years.