Bellwether Closes $62M in Financing

Larkspur

Bellwether Enterprise has closed three financing deals totaling more than $62 million; a multifamily property in both New York and Texas, and an industrial property in Ohio.

“Both asset classes continue to experience rent growth and low vacancy rates even as supply has increased,” DJ Effler, Bellwether Enterprise’s senior vice president, Columbus, told MHN. “Post-downturn, lenders have been underweight industrial so the appetite to finance remains strong. As for multifamily, the agencies appetite remains strong; however, some life companies and banks are pulling back due to a substantial increase in exposure in recent years.”

On the multifamily side, the company closed a $37 million affordable housing loan for the Larkspur, an eight-story mixed-income and mixed-use property in the Central Harlem neighborhood of Manhattan. The building consists of 116 units and seven ground-floor commercial spaces.

Bellwether Enterprise found a competitive, fixed-rate MBS loan with a 12-year lending term through Fannie Mae. The terms of the financing ensure that no less than 20 percent of the units are reserved for low-income families or individuals. Jim Gillespie, senior vice president of Bellwether Enterprise in the New York office, arranged the loan for The Lemle & Wolff Companies.

In Carrolton, Texas, the company closed a $10.4 million acquisition loan for HLC Equity on the Toscana Apartments, a 192-unit, Class-B multifamily community in the Greater Dallas area. The building offers convenient access to the Dallas North Tollway and the President George Bush Turnpike. Bellwether Enterprise granted the loan under Fannie Mae’s Green Financing program.

As part of the program, HLC Equity will renovate the property to enhance water and energy efficiency for its residents. Laurie Morfin, senior vice president of Bellwether Enterprise in the San Diego office, arranged the financing.

“Our clients are telling us that the first quarter results for their multifamily portfolios in most markets remain very strong,” Effler said. “High quality projects continue to be developed, but obtaining construction financing is becoming more difficult which will naturally slow down supply. Overall, the fundamentals are still very strong.”

The company also arranged a $15.2 million refinance loan for the GOJO Manufacturing Facility, an industrial property located in Cuyahoga Falls, Ohio. The property currently serves as the main manufacturing facility for GOJO Industries Inc.

According to Effler, Bellwether Enterprise is mortgage banking company with a philanthropic bend to it.

“Our mission is to create opportunities for low- and moderate-income people through affordable housing in diverse, thriving communities,” he said. “Providing financing for multifamily ties directly into our company philosophy. Bellwether Enterprise is a full-service mortgage banking platform and we remain active in providing financing solutions for all property types.”