Bellwether Enterprise Real Estate Capital has closed two deals totaling more than $20.5 million for a multifamily property in Ohio and another community in Virginia.
The company obtained a $19.8 million bridge loan for an apartment community in a historic building within the downtown district of Cincinnati. The contemporary property features studio, one-bedroom loft and two-bedroom apartments with hardwood floors, high ceilings and patios or balconies. The rental property offers amenities that include a business center, community room, fitness center, sundeck and heated rooftop pool.
Bob Pearson, Bellwether Enterprise senior vice president in the Cincinnati office, arranged the nonrecourse, interest-only bridge loan using Voya as lender.
The loan featured a four-year term with a one-year extension option and was able to finance 75 percent of the property’s acquisition cost while providing additional facility to fund 100 percent of future capital improvements up to almost $3.5 million.
The bridge loan allowed the borrower to acquire control of the property, avoid recourse and finance all its planned improvements by simply providing paid invoices. Voya executed on a quick closing and was able to accommodate a closely-held TIC structure that allowed two partners to take advantage of two separate 1031 exchanges.
Acres of land
Bellwether Enterprise obtained a $10.8 million permanent financing loan for a Portsmouth, Va., property called Sterling King Apartments. The community features 113 one- and two-bedroom units situated across two four-story structures on 2.18 acres of land.
Individual units feature wood plank flooring, modern kitchens, granite countertops, bedroom carpeting and oversized soaking tubs. Community amenities include a clubhouse, game room, media room, Internet cafe, fitness center and dog park.
Kelly Martone, Bellwether Enterprise vice president in the Norfolk office, arranged the permanent financing-construction takeout loan using Principal Financial Group as lender.
The varied nature of the two apartment community financing deals, part of a larger $38 million financing package that included a hotel and business center, highlights the experience of the Bellwether Enterprise team, said Ned Huffman, the company president.
“As our diverse portfolio of clients around the country continues to grow, we remain steadfast in our commitment to leveraging our established industry knowledge and foundation of work to provide tailored, flexible financing solutions.”