Bellwether Enterprise Closes 4 Affordable Housing Loans

The financing totaled $94 million and will help construct and preserve 719 units in Texas and New York City.
Rendering of 461 Alabama Apartments. Image courtesy of Bellwether Enterprise Real Estate Capital LLC

Bellwether Enterprise Real Estate Capital LLC has closed on three construction loans and a refinancing totaling $94.1 million. The four loans will help build and preserve more than 700 units of affordable housing in Texas and New York City.

Executive Vice President & National Director of affordable and FHA production Phil Melton of Bellwether’s Dallas office, and Senior Vice President Cindy Hannon of the Duluth, Ga., office, originated the three loans in Texas. Executive Vice President Jim Gillespie and Vice President Ilya Weinstein, both in the New York City office, originated the loan for a borrower in Brooklyn, N.Y.

Melton said in a prepared statement the three Texas loans, two in Austin and one in Garland, are for well-constructed and maintained properties that have the potential to revitalize their surrounding neighborhoods. He said the deals exemplify Bellwether Enterprise’s commitment to preserving and expanding affordable housing in Texas.

The three deals are:

Austin Manor Apartments, Austin

Received a $42.7 million Freddie Mac Unfunded Forward Tax-Exempt permanent loan for the construction of a 280-unit, 4 percent Low-Income Housing Tax Credit (LIHTC) housing development at 6625 East Parmer Lane in East Austin. All units will be rent restricted at or below 60 percent of the area median income (AMI). Amenities will include a 6,000-square-foot clubhouse, swimming pool, sports courts and playground. Family support services including counseling, adult education, health and nutrition courses and youth programs will be offered on-site.

Austin Colorado Creek, Austin

Received a $32.7 million Freddie Mac Unfunded Forward Tax-Exempt permanent loan for the construction of a 240-unit affordable housing community at 2917 Falwell Lane in the Austin-Round Rock metro area. The property was financed through 4 percent LIHTC. Eighty percent of the units will be rent restricted at or below 60 percent AMI with the remaining 20 percent rent restricted at or below 50 percent AMI. There will be 10 two-story buildings with a mix of one-, two- and three-bedroom units. The development will feature a large clubhouse, including a business and community center, a swimming pool, playground, carports and controlled access to the property.

City Square Artist Lofts, Garland

Received a $13.1 million Freddie Mac refinance loan for a 128-unit, 9 percent LIHTC property at 705 W. Avenue B in downtown Garland in the Dallas-Fort Worth metroplex. The development includes 88 units with rent restrictions between 30 percent and 80 percent AMI and 38 market-rate units. A regulatory agreement is in place for 35 years to ensure the property, which has played a key role in the neighborhood’s revitalization, will retain long-term affordability. The property features a clubhouse, business center, fitness center, community kitchen, swimming pool and BBQ area.

Brooklyn Loan

The Brooklyn deal was arranged by Gillespie and Weinstein on behalf of the borrower, CB Emmanuel Realty, and a nonprofit partner, Services for the UnderServed (SUS). The Bellwether Enterprise team secured a $5.7 million Freddie Mac permanent loan for the construction of 461 Alabama Apartments, a seven-story, 71-unit building at 461 Alabama Ave. in the East New York section of Brooklyn. The loan includes a 36-month, 9 percent LIHTC unfunded forward commitment with a 30-year term and 35-year amortization at a fixed rate of 4.6 percent. Forty-three apartments will be set aside for formerly homeless individuals. SUS will provide on-site social services to the residents, who will also have access to a private rooftop garden.

Gillespie said in prepared remarks 461 Alabama Apartments will provide vital, high-quality residences for those in the community. He noted the Bellwether Enterprise team closed the transaction within 51 days of the loan application.