Bellwether Enterprise Real Estate Capital LLC closed a $10.8 million Fannie Mae loan for the acquisition of Four Seasons Apartments in Faribault, Minnesota. The 144-unit property was purchased for $12.5 million, which works out to $86,805 a unit.
The four-building property was built in the 1970s and has gone through exterior updates, including new roofs, windows, siding and decks in the past five years. New ownership plans to continue updating the property with high-efficiency lighting and low-flow water fixtures, in addition to unit upgrades.
The development is the first transaction out of Bellwether Enterprise’s Minneapolis office to utilize Fannie Mae’s new Sponsor-Initiated Affordability (SIA) program. The SIA program will ensure rents at Four Seasons Apartments are affordable to tenants earning 80 percent of Area Median Income (AMI) or less for the 12-year loan term.
“Bellwether Enterprise is proud to be a part of the future of Four Seasons Apartments,” said Lucas Goring, Vice President in Bellwether’s Minneapolis office, who originated the loan. “This deal represents an important step towards increasing the availability of affordable housing in Minnesota.”
The new ownership group is a subsidiary of Felfam Limited Partnership, a third-generation family partnership based in California with assets across the country in all major property types.
“Four Seasons is a great addition to our portfolio,” said Ryan Stomel, General Partner of FelFam LP. “We are actively searching for more projects in Minnesota because of the critical mass we have there. The economic stability in the state continues to impress us.”
