Key financing has been secured for a planned 201-unit affordable housing development in Colorado Springs, Colorado.
Bellwether Enterprise Real Estate Capital announced the closing of a $22 million Freddie Mac Forward Commitment Tax-Exempt Loan for Academy Heights Apartments.
Anthea Martin, senior vice president in Bellwether Enterprise’s Denver office, originated the loan on behalf of the borrower, DBG Properties.
“With rising construction costs and local homes sales averaging $450,000, housing has become one of the top issues facing Colorado Springs,” said Martin.
The 36-month forward commitment has a 15-year fixed rate permanent loan with a one-year interest-only period and 35-year amortization. The loan structure also includes a taxable tail totaling $335,000.
Positioned on 6.65 acres, Academy Heights Apartments will offer one-, two-, and three-bedroom units. Of the 201 units, 11 are expected to be restricted at 30% of the area median income (AMI), 157 at 60% of the AMI, and 33 at 70% of the AMI. The affordable housing agreement will last 15 years from the effective date of the agreement, which will be followed by a 15-year extended-use period, said project partners.
Residents will have access to 330 spaces of surface parking as well as to a clubhouse, a community room with a leasing office, a fitness center, a picnic area, a pool, and a dog run.
The El Paso County Housing Authority provided a loan of $300,000 for the Academy Heights Apartments, and the Colorado Housing Investment Fund provided a $3 million loan. In addition, the development utilizes 4% low-income housing tax credits with equity from Affordable Housing Partners.
