Bellwether Enterprise Real Estate Capital LLC closed four deals totaling more than $38 million for two multifamily, one hospitality and one flex-retail property located across four states, including one property in the Midwest, an apartment community in Ohio.
In the Ohio deal, Bellwether provided a $19.8 million bridge loan for a multifamily building in Cincinnati.
The contemporary urban apartment community features studio, one-bedroom loft and two-bedroom apartments with a suite of attractive amenities, including hardwood floors, high ceilings and patios or balconies. Situated within a historic building in the downtown region of Cincinnati, the apartment community also includes a business center, community room, fitness center, sundeck and heated rooftop pool.
Bob Pearson, senior vice president of Bellwether Enterprise in the Cincinnati office, arranged the non-recourse, interest-only bridge loan using Voya as the lender.
The loan featured a four-year term with a one-year extension option and was able to finance 75 percent of the property’s acquisition cost while providing additional facility to fund 100 percent of future capital improvements up to almost $3.5 million.
As a result, the bridge loan allowed the borrower to acquire control of the property, avoid recourse and finance all planned improvements by only providing paid invoices. Voya executed on a quick closing and was able to accommodate a closely-held TIC structure that allowed two partners to take advantage of two separate 1031 exchanges.
