Two Bellwether loan originators, Doug Taylor out of the Irvine, CA
office, and Cindy Hannon out of the Atlanta, GA office, teamed up to secure financing last month for the third phase of the Artesian Springs multi-family property in Millcreek, Utah.
The property was financed with tax exempt bonds and executed as a Freddie Mac forward tax exempt loan in 2016. Provided at the time through Bellwether/Freddie Mac was a 24-month forward with Chase Bank as the construction lender and Enterprise Community Investment providing the tax credit equity.
Population in the state of Utah is booming and that trend is expected to continue over the next several decades. The current population in Utah is estimated to be about 3.1 million with experts projecting that to rise to more than 5 million by 2050.
This sets up for a thriving market for multi-family housing, especially in places like the Millcreek, a suburb of the state’s capital and largest city.
This Phase III project features 134 units, including 120 units with long-term rent restrictions for tenants at 50% and 60% of area median income per a 50-year Land Use Restrictive Agreement with Utah Housing.
The Artesian Springs property has already experienced a successful start as the phase three project was built on time and on budget, and reached stabilized occupancy in June 2018. No extensions were needed and the forward loan converted to the Freddie Mac permanent loan
prior to the forward commitment expiration date.
Further highlighting the property’s success is that it has thus far exceeded income projections and unit absorption projections.
Dave Bevan, the project borrower, had nothing but great things to say about his experience with the Bellwether team following the deal.
“I would like to thank each of you for the excellent experience we have had closing out Artesian Springs III,” he said in a written testimonial to Bellwether. “I have now closed out six projects with three different lenders. My experience dealing with (Bellwether Enterprise) has been outstanding. You have been professional, well organized and executed everything with precision.”