Bellwether Enterprise Secures $21M for SF Affordable Housing Portfolio
- Sep 27, 2018
A portfolio of five multifamily affordable housing properties, consisting of 370 units in the San Francisco Bay area, received $21.5 million in loans thanks to Bellwether Enterprise Real Estate Capital LLC.
“The lack of affordable homes is detrimental to Bay Area communities, and it is only becoming more challenging for low-income residents to keep up with rising rents,” Ned Huffman, Bellwether Enterprise’s president, said.
Each of the five properties received a Freddie Mac Freddie Mac Targeted Affordable Housing Preservation Loan, which will go towards deferred maintenance to allow for safe affordable housing in high-cost markets for the long term. The loans boast a 15-year financing term at a fixed rate that is lower than the previous rate on the assets, and allows for interest-only payments for the first three years.
The Five Recipients
Located at 160 Sycamore Ave. in Brentwood, Brentwood Park Apartments received the most funding, with $6.7 million. A second Brentwood community, the Brentwood Garden Apartments located at 180 Sycamore Ave., received $3.7 million.
Gilroy Garden Apartments at 9250 Wren Ave. in Gilroy was given a $4.9 million loan; the Pittsburg Park Apartments at 2179 Crestview Drive in Pittsburg received $4.1 million in financing; and the Fairfield Vista Apartments, located at 201 Pennsylvania Ave. in Fairfield, was awarded $2 million in loans.
“It is always rewarding to work on deals that benefit local communities and residents,” John Roberts. Bellwether Enterprise’s vice president in the Dallas offer, who arranged the loan, said. “In a housing market with limited options for low-income families like the Bay Area, our team is very proud to provide financing solutions with an impact of this kind.”
In August, HLC Equity acquired Republic Deer Creek Apartments, a 336-unit Class A multifamily community in south Fort Worth, Texas, utilizing a $25.2 million Bellwether Enterprise and Maverick Capital-originated agency loan under the Freddie Mac program.
Not Enough to Meet Demand
According to San Francisco Planning’s 2018 San Francisco Housing Needs and Trends Report, nearly 9 percent of the area’s housing is subsidized at affordable rates for households that earn at or below specified income levels.
The Mayor’s Office of Housing and Community Development’s most recent report revealed the number of people trying to find affordable housing in the area is on the rise and there’s not nearly enough available.
Last year alone, there were 104 housing lotteries that saw more than 85,000 households trying for just 1,210 units of affordable housing available.