BWE, a national commercial and multifamily mortgage banking company, announced today that it has secured a direct purchase of $24,000,000 in tax-exempt bonds for the construction and permanent financing of Barnett Villas, a 156-unit affordable multifamily development in Orlando, Florida. The purchase was facilitated through BWE’s Direct Bond Purchase Program.
Peter Borstelmann, executive vice president in BWE’s Pittsburgh office, and Jim Gillespie, executive vice president in BWE’s New York City office, executed the purchase of the tax-exempt bonds, which were issued by the Florida Housing Finance Corporation (FHFC). The bonds feature a fixed interest rate during both the construction and permanent phases, as well as an initial three years of interest-only payments, after which a 40-year amortization will take effect.
“BWE’s Direct Bond Purchase Program provides developers with an elegant solution for construction and permanent financing by utilizing tax-exempt bonds. On behalf of institutional capital partners, we invest in tax-exempt bonds and the proceeds are then used to finance the construction or rehabilitation of affordable multifamily and seniors housing,” said Gillespie. “To date, the program has preserved or created 5,950 housing units and closed over $845 million in bonds. Our team continues to guide borrowers through a streamlined, efficient underwriting and closing process to achieve premium results like we did for Barnett Villas.”
Barnett Villas, which will be located at 1050 Barnett Villas Drive, will include 60 one-bedroom units, 84 two-bedroom units, and 12 three-bedroom units. The property, consisting of five three-story garden-style residential buildings and a clubhouse, will also feature amenities such as a fitness center, resident lounge, and surface parking.
Of the development’s 156 units, 39 will be designated for residents earning up to 50% of the area median income (AMI), 78 will be designated for residents earning up to 60% of the AMI, and 39 will be designated for residents earning up to 70% of the AMI. The project’s total budget is $44.9 million, which includes $18.2 million of low-income housing tax credit equity syndicated by Enterprise Housing Credit Investments.