BWE, a national commercial and multifamily mortgage banking company, announced today that it has secured a combined $42,502,000 in loans to finance the construction of affordable housing developments in cities across Georgia, South Carolina, and Texas.
Jon Killough, BWE executive vice president in Alabama, and John Roberts, BWE vice president in Dallas, TX, originated the loans and bond purchases on behalf of the borrowers.
“It’s common knowledge that there is an imbalance of affordable housing in our country. For both new and existing developments, the deficit is very real,” said Killough. “For these three new developments, we were able to secure the most ideal financing terms for the borrowers so they can break ground on this much-needed housing. BWE continues to work tirelessly to deliver new affordable housing units nationwide, especially to underserved communities.”
The three properties are:
- The Simpson (Atlanta, GA), a $28,000,000 tax-exempt bond purchase which, following a mandatory repayment of $19,345,000, will convert to a $8,655,000 permanent loan with a 14-year, 9-month term to finance the construction of a 139-unit, five-story, affordable apartment building. The development will contain a mix of 23 one-, 82 two-, and 34 three-bedroom units and feature a parking garage, controlled access, elevators, leasing office, laundry facility, fitness room, cyber lounge, meeting space, arts and crafts room, and a community room with outdoor balcony space. Out of the 139 total units, 39 will be restricted at or below 30% of the area median income (AMI), 56 will be restricted at 60% of AMI, and 44 will be set aside for those earning up to 80% of AMI. The transaction will be interest-only throughout the 21-month construction and stabilization period, followed by a 40-year amortization.
- Peaks of Lexington (Lexington, SC), a $5,200,000 Freddie Mac 9% Forward loan secured on behalf of Resource Housing Group to finance the construction of a 78-unit, 100% LIHTC restricted, garden-style apartment complex. The property will contain six one-, 40 two-, and 32 three-bedroom units, and will include amenities such as a clubhouse, business center, fitness center, playground, and an on-site management office. Out of the 78 total units, 5 units will be restricted to residents earning up to 30% of AMI, 24 units will be set aside for residents earning up to 50% of AMI, and 49 units are marked for residents at 60% of AMI. As part of the recapitalization of the property, an allocation of new 9% LIHTCs was secured through SC Housing. The loan has a 15-year, fixed-rate term with a 40-year amortization.
- Heights at Crowley (Fort Worth, TX), a $9,302,000 Freddie Mac 9% Forward loan originated on behalf of Generation Housing Development to finance the construction of a 96-unit, 83% LIHTC restricted garden-style affordable apartment complex. The property will contain 12 one-, 48 two-, and 36 three-bedroom units, and amenities will include a clubhouse, swimming pool, office, daycare, playground, dog park, and a nature trail. Notably, a grant from Bezos Academy will fund a preschool to be operated in the complex’s clubhouse room. Of the 96 total units, 10 will be designated for residents earning up to 30% of AMI, 18 will be set aside for residents at 50% of AMI, 52 are marked for residents at 60% of AMI, and the remaining 16 are unrestricted units. As part of the capitalization of the property, an allocation of 9% LIHTCs was secured through the Texas Department of Housing and Community Affairs. The 15-year, fixed-rate loan has a 40-year amortization.