TX, AZ Affordable Senior Properties Land $18M Financing
- Apr 13, 2018
Bellwether Enterprise Real Estate Capital LLC (Bellwether), a subsidiary of Enterprise Community Investment Inc., has closed a total of $18.2 million in financing for three affordable senior housing properties. Two communities are located in Kingman, Ariz., and one is in Austin, Texas.
“The need for quality affordable housing is an issue nationwide that lawmakers and industry leaders are continuing to prioritize and develop creative initiatives to address. However, it is critical that we also prioritize expanding housing options for the underserved senior housing population, many of whom need specific services that often are not available in homes or rental communities they can afford,” Jon Killough, senior vice president of Bellwether’s Montgomery, Ala., office, told Multi-Housing News.
The upcoming Nightingale at Goodnight Ranch in Austin received a $15.4 million tax-exempt loan for affordable housing. The property will include 174 units, of which 141 will be Low-Income Housing Tax Credit (LIHTC)-restricted. The remaining 33 units will be market-rate. The site at 5900 Corrine Lane is situated next to the 555-acre Onion Creek Metropolitan Park. The location will offer tenant access to four community ponds and a pool.
Kevin Bowen, senior vice president of Bellwether in the Dallas office, arranged the 4 percent forward tax-exempt loan for Diana McIver & Associates and Austin Housing Finance Corp. The lender was Freddie Mac.
Complex financing structure
Kingman Heights Apartment and Amy Neal Retirement Center in Kingman, Ariz., landed a total of $2.8 million in acquisition and rehabilitation financing. Both communities, owned by an affiliate of Foundation for Senior Living, are subsidized through the U.S. Department of Housing and Urban Development’s (HUD) Project-Based Section 8 Program. Units are reserved for residents age 62 and older, earning up to 50 percent of the Area Median Income (AMI) and contributing 30 percent of their income to rent payments. Both projects benefited from 9 percent LIHTC financing.
Kingman Heights was constructed in 1984 with the HUD Section 202 Supportive Housing for the Elderly Program. The pet-friendly community comprises 33 one-bedroom apartments across seven one-story buildings. Amy Neal Retirement Center comprises 24 one-bedroom and studio apartments, across four one-story structures and a community building.
Killough and Bob Morton, director of RHS programs & senior vice president in Bellwether’s South Bend, Ind., office, arranged the financing, using Rural Housing Service 538 Guarantee Rural Rental Housing Services as the lender. The owner will use the permanent loan to renovate both properties. The financing included a 24-month advance forward-rate lock along with a low fixed forward rate agreement with a 40-year loan term and amortization period.
“Another important attribute of this property was the existence of rental subsidies through the U.S. Department of Housing & Urban Development, whereby the infusion of new capital into the property ensures that quality affordable housing will be available regardless of the resident’s income level,” added Killough, referring to the combined financing of the Kingman properties.
Images courtesy of Bellwether Enterprise