Bellwether Enterprise Real Estate Capital LLC announced it has closed $36.66 million for affordable housing in the Chicago metropolitan area within the last two months.
Thornwood Apartments, a $9. 1 million refinance loan in Chicago Heights for a mixed-income, multifamily property.
Ten years prior, the property was re-capitalized using tax exempt bonds and 4 percent Low Income Housing Tax Credits. DKI, Inc., the borrower, used the loan proceeds to pay off the existing first mortgage debt and fund additional replacement reserves, resulting in a significant increase in cash flow.
Victor Agusta, senior vice president at Bellwether Enterprise, arranged the loan through Freddie Mac, leveraging the current interest rate environment to secure a rate seven months prior to the expiration of the lock out period from the previous debt. Freddie Mac agreed to increase the committed loan amount by $300,000 at closing based on improved operations during the Commitment period.
Mark Twain Apartments, two acquisition loans of $16.6 million and $5.25 million, each in Chicago. A mixed-use property located in the downtown neighborhood Gold Coast, the 5-story building has 152 single room occupancy units above one floor of retail space. Loan originator, Victor Agusta arranged financing for the NHP Foundation, the borrower, for 95 percent of the acquisition costs between the lenders Pembrook Capital Management, LLC and the Chicago Community Loan Fund.
Under the City of Chicago’s Single Room Occupancy ordinance, which incentivizes sellers to find buyers willing to preserve properties’ affordability, the NHP Foundation purchased Mark Twain Apartments. And with shrinking housing options for low-income families in Chicago’s Gold Coast, the NHP Foundation intends to renovate the property and preserve their affordable status for the future.
Senior Suites, refinance loans totaling $5.7 million for five properties located across Chicago in Austin, Belmont Craigin, Central Station, Ravenswood and Garfield Ridge. With Fannie Mae, loan originator, Victor Agusta refinanced these five Low Income Housing Tax Credit properties for Senior Suites Chicago Corporation, a leading developer of independent senior affordable housing in the city. The refinancing allowed Senior Suites Chicago Corporation to gain control of the limited partner interests, pay off existing debts, and invest in improvements to these and three other older LIHTC properties. By processing and closing the five loans at the same time, Bellwether Enterprise was able to lower transaction costs and interest rates.
