Bellwether Enterprise Finances $4.4M Multifamily Apartment Acquisition

Diablo Villa
Bellwether Enterprises

Bellwether Enterprise, the mortgage banking subsidiary of Enterprise Community Investment, closed two multifamily deals for $4.4M.

The team led by SVP Laurie Morfin and VP Scott Hay arranged the financing. Hofmann Holdings refinanced the 40-unit Diablo Villas apartments in Walnut Creek while Country Club Apartments GP refinanced the 80-unit Country Club Apartments. Each loan totaled $2.2M, and Bellwether provided 20-year fully amortizing loans.

Laurie notes the deal demonstrates Bellwether’s ability to provide novel financing solutions to clients. “Our ability to continuously meet our clients’ needs, and our access to one of the best mortgage capital platforms in the industry, position us for continued growth throughout California and throughout the country,” she says.

Bellwether worked in partnership with Freddie Mac to complete the financing. The 20-year loan features fixed interest rates for the first 10 years and would float for the remainder of the term. Stepdown prepays, which allow the client to sell a property earlier, were negotiated during the fixed-rate period. Since this was a low leverage deal, Freddie did not require carve-out guarantors. Carve-out protections allow a lender to "go after" a borrower's general assets separately from the property in question.

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