BWE Arranges $60M in Financing for Affordable Housing Projects in the South

by Jeff Shaw

DALLAS, ATLANTA and NASHVILLE — BWE has arranged three financings totaling over $60 million to build, renovate and provide permanent financing for three affordable multifamily housing properties.

Jon Killough and John Roberts originated the Freddie Mac tax-exempt loans on behalf of the borrowers.

In the first transcation, BWE arranged a $14.2 million loan for Villages at Carver in Atlanta. The borrower, an Atlanta-based developer and operator, will fund renovations and permanent financing for the 220-unit, mixed-income, garden-style apartment complex. The development houses a mix of one-, two-, three-, and four-bedroom units. Out of the 220 total units, 154 will be restricted to residents earning at or below 60 percent of the area median income (AMI

The 18-year, fixed-rate loan features two years of interest-only payments and has a 40-year amortization. As part of the recapitalization of the property, an allocation of new 4 percent Low-Income Housing Tax Credits (LIHTCs) was also secured through the Georgia Department of Housing and Community Affairs.

In the second transaction, BWE arranged $29.5M in financing for Nashville Christian Towers in Nashville. The Alabama-based borrower developer and operator and will refinance debt on the 177-unit, Section 8, LIHTC, age-restricted, high-rise apartment complex. 

Originally constructed in 1981, 175 units will be restricted to residents earning up to 60 percent of AMI. The two-year, interest-only gap loan was accompanied by a 17-year, fixed-rate loan with a 40-year amortization. As part of the recapitalization of the property, an allocation of new 4 percent LIHTCs was also secured through the Tennessee Housing Development Agency.

In the final transaction, BWE arranged $16.8 million in financing for Estates at Ferguson in Dallas. The borrower is a Dallas-based developer and operator seeking to provide permanent financing for the planned 164-unit, age-restricted, garden-style affordable housing development.

The property will consist of 99 one-bedroom units and 65 two-bedroom units. 16 units will be designated for residents earning up to 50 percent of AMI and the remaining 148 units will be designated for residents earning up to 60 percent of AMI.  The 15-year, fixed-rate loan with two years of interest-only payments has a 40-year amortization. As part of the capitalization of the property, short-term, tax-exempt bonds were issued by City of Dallas HFC and an allocation of 4 percent LIHTCs was also secured through the Texas Department of Housing and Community Affairs.

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