Bellwether Enterprise Real Estate Capital LLC (Bellwether Enterprise), the commercial and multifamily mortgage banking subsidiary of Enterprise Community Investment Inc. (Enterprise), announced the closing of more than $42 million in refinancing for three affordable housing properties located in Charlotte, North Carolina. The loans provided funding for these and other public housing properties as part of a larger portfolio Rental Assistance Demonstration program (RAD) transaction. A program of the Department of Housing and Urban Development (HUD), RAD allows housing authorities to access private capital to meet capital needs while also protecting long-term affordability.
“The need for affordable housing is increasing at a staggering rate nationwide—preserving and upgrading affordable housing stock must be prioritized to meet this growing need,” said Ned Huffman, President of Bellwether Enterprise. “The Bellwether Enterprise team has carved out a name for itself as industry experts that are committed to maintaining and creating affordable housing options for all individuals in need—no matter who they are, where they live, or what their circumstances are. We were proud to be a part of this project, which will help maintain three public housing properties that serve key Charlotte communities in need, including seniors, families, and individuals with disabilities.”
The deals include:
- Southside Homes, a $24.146 million affordable housing refinancing loan for a multifamily property in Charlotte, North Carolina. The income-based housing serves seniors, families, and individuals with disabilities, and includes 381 one-bedroom, two-bedroom, three-bedroom, and four-bedroom units. Located in the South End neighborhood of Charlotte, the apartment community is within walking distance of several restaurants, the light rail, and The Bethlehem Center Head Start facility. Residents also have access to the Above and Beyond program, YMCA afterschool programs, and the on-site Jobs Plus Program, which offers programming to help adult residents overcome career barriers.
- CHA Towers, an $18 million affordable housing refinancing loan for two multifamily properties in Charlotte, North Carolina.
- Edwin Tower, located in Uptown Charlotte in the Fourth Ward, serves seniors and includes 176 efficiency, one-bedroom, and two-bedroom units. The income-based housing is located near the McColl Center for Visual Arts and offers a full-time, on-site social worker who provides classes and outing programs.
- Charlottetown Terrace, located in the Dilworth neighborhood of Charlotte just outside the central business district, serves individuals with disabilities and features 161 efficiency and one-bedroom units. The income-based housing is newly-redeveloped and was the first 100 percent public housing high rise to achieve LEED Gold certification.
Bellwether Enterprise closed on the two loans under the FHA 223(f) program. Both loans paid off existing debt and funded reserves for a portfolio of over 40 properties that were converting from a public housing subsidy program to long-term Section 8 contracts through HUD’s RAD program. Victor Agusta, senior vice president of Bellwether Enterprise in the Raleigh office, arranged the financing for Horizon Development Properties, Inc (HDP), an affiliate of the Charlotte Housing Authority.
“The arranged financing for these three properties showcases a creative and innovative approach to the RAD program,” said Victor Agusta. “Both loans allowed Charlotte Housing Authority to shift rental subsidies to three properties in return for paying off portfolio debt and funding reserves—significantly reducing transaction costs associated with a large portfolio conversion. The transactions were also structured to maintain flexibility for future development of critical affordable housing on the property sites.”
