Bellwether Enterprise Real Estate Capital LLC (BWE), a national commercial and multifamily mortgage banking company, announced today the closing of a $150 million Freddie Mac Transitional Line of Credit (TLC) originated for Envolve Communities, LLC. The credit facility, which is Freddie Mac’s first specifically for Targeted Affordable Housing, was seeded with four affordable housing communities located in Houston, TX, Bartlesville, OK, Duncanville, TX, and Round Rock, TX.
Jon Killough, Executive Vice President in the firm’s Alabama office, and John Roberts, Vice President in the firm’s Dallas, TX, office, originated the TLC after working closely with Envolve’s management team to develop a capital solution to bridge property acquisitions or existing properties exiting the LIHTC compliance period to a rehabilitation and recapitalization. The terms of the TLC include 5-year adjustable-rate loan terms with two 12-month extension options and full-term interest only periods. “The TLC for Envolve Communities will provide a flexible capital solution on existing affordable assets as the company prepares the same assets for rehabilitation or future LIHTC re-syndications,” said Killough.
“Affordable housing is the bedrock of strong neighborhoods, and we are thrilled to work with Envolve Communities and Freddie Mac to close this line of credit which provides capital needed to preserve and improve existing units,” said Kamara Green, BWE’s National Director of Affordable Housing Production. “This year, BWE looks forward to working with new partners and long-time clients to secure financing for projects that can help combat the country’s ongoing affordability crisis.”
The four seed assets include:
Aspen Park (8811 Boone Road, Houston, TX), a 256-unit garden-style apartment complex offering two- and three- bedroom apartments. Financed through the Low-Income Housing Tax Credit (LIHTC), the property provides housing for low-income residents with rent and income restrictions in place at or below 60% of the area median income (AMI) on 90% of the units, with 5% set aside for disabled tenancy.
Brookhaven Plaza (1441 South Santa Fe Ave, Bartlesville, OK), a 120-unit garden-style apartment complex offering one-, two-, and three- bedroom apartments. Financed with LIHTCs and the Department of Housing and Urban Development’s Housing Assistance Payment (HAP) program, the property is encumbered by two long-term HAP contracts for 100% of the units. 100% of the units are income and rent restricted at or below 50% AMI, with 5% set aside with rents at or below 25% AMI for disabled tenancy.
Center Ridge (700 W. Center St, Duncanville, TX), a 224-unit garden-style apartment complex offering one-, two-, and three- bedroom apartments. Financed with LIHTCs, the property provides housing for low-income residents with rent and income restrictions in place at or below 60% AMI for 95% of the units and the remaining 5% unrestricted, with 5% set aside for disabled tenancy.
Red Hills Villas (1401 South A.W. Grimes Boulevard, Round Rock, TX), a 168-unit garden-style apartment complex offering one-, two-, and three- bedroom apartments. Financed with LIHTCs, the property provides housing for low-income residents with rent and income restrictions in place at or below 60% AMI on 100% of the units, with 5% set aside for disabled tenancy.
Red Hills Villas, Round Rock, TX