This property was built in 1920 as a Catholic Seminary. It will be transformed through new construction and adaptive reuse into 176 units of affordable housing. The apartment building will have LIHTC restrictions on 124 of the units (77%) while the other 52 units (23%) will be market rate. The LIHTC restricted units will be in both the newly constructed structures as well as the existing structures. The land that the apartment homes is built on is being leased by the Archdiocese of San Antonio.
Hadley Bressman (SVP, NYC) arranged the financing of this Fannie Mae MTEB Loan. It was a 24-month Forward Commitment with 2 optional 6-month extensions. Once it is converted, it will have a 15-year term with a 35-year amortization and a 4.70% fixed interest rate.
Upon Conversion, Fannie Mae will issue an MBS for $23,000,000, which will be delivered to the Bond Trustee to serve as security/credit enhancement for the bonds, allowing a bond rating of AA+. Bond proceeds will remain in escrow until they are needed to fund construction, then construction loan proceeds are transferred to the Trustee to assure the escrow account remains fully funded. At conversion, the escrow account is liquidated to purchase the Fannie Mae MBS. Bellwether will fund the permanent loan initially, with proceeds going to pay off the construction loan, and will be reimbursed when the Fannie Mae MBS is delivered and purchased by the Trustee.