Bellwether Enterprise Real Estate Capital LLC (Bellwether Enterprise), the commercial and multifamily mortgage banking subsidiary of Enterprise Community Investment Inc. (Enterprise), announced today the closing of $21.47 million in loans to preserve a portfolio of five multifamily affordable housing properties totaling 370 units across the San Francisco Bay Area. As prices continue to rise in San Francisco and the surrounding cities, preserving high-quality affordable homes and offering long-term security to low-income families is essential.
“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,” said Ned Huffman, president of Bellwether Enterprise.
“This portfolio refinance was critical in preserving much needed affordable housing stock,” said Phil Melton, executive vice president and national director of Affordable Housing and FHA Lending of Bellwether Enterprise. “Given the high cost of new developments and other barriers to entry, being able to structure a financing solution that meets the needs of the lender as well as local residents aligns with the Bellwether Enterprise’s mission and focus.”
The five individual Freddie Mac loans will be used to finance the preservation of the existing 370 units, which will allow the owners to pay for deferred maintenance to provide safe affordable housing in high-cost markets for the long term. The properties include:
- Brentwood Park Apartments ($6,725,000) at 160 Sycamore Avenue and Brentwood Garden Apartments($3,702,000) at 180 Sycamore Avenue, both in Brentwood, California;
- Gilroy Garden Apartments ($4,915,000) at 9250 Wren Avenue in Gilroy, California;
- Pittsburg Park Apartments ($4,113,000) at 2179 Crestview Drive in Pittsburg, California; and
- Fairfield Vista Apartments ($2,015,000) at 201 Pennsylvania Avenue in Fairfield, California.
John Roberts, Vice President of Bellwether Enterprise in the Dallas office, arranged the loan with Freddie Mac as the lender. The loan is a Freddie Mac Targeted Affordable Housing Preservation Loan, which features a long 15-year financing term at a fixed rate that is lower than the previous rate on the assets, and also allows for interest-only payments for the first three years.
“It is always rewarding to work on deals that benefit local communities and residents,” said Roberts. “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.”
About Bellwether Enterprise
Bellwether Enterprise provides flexible financing solutions for clients covering the entire spectrum of commercial and multifamily real estate. For more information on Bellwether Enterprise’s services, visit us at: www.BellwetherEnterprise.com.
Bellwether Enterprise is a national, full-service commercial and multifamily mortgage banking company. As a subsidiary of Enterprise Community Investment, Bellwether Enterprise has production offices across the country and an integrated servicing platform based in Cleveland. With local market expertise, national lending relationships and financing structure experience, we provide clients with competitive, creative solutions for their financing needs. Bellwether Enterprise provides loans for a range of institutional investors including life insurance companies, pension funds, commercial banks and CMBS lenders and is a Fannie Mae Delegated Underwriting and Servicing (DUS®) lender, Freddie Mac Multifamily Licensed Seller/ Servicer for Conventional and Targeted Affordable Housing Loans, Federal Housing Administration (FHA) approved Multifamily Accelerated Processing (MAP) lender and U.S. Department of Agriculture (USDA) Section 538 Rural Development lender.