Freddie Mac, Bellwether and Comunidad Launch Innovative Tenant Advancement Commitment Multifamily Financing Program
Comunidad Partners (Comunidad) has secured a $300 million financing commitment through Bellwether Enterprise (Bellwether) and Freddie Mac that supports the creation or preservation of affordable workforce housing throughout the United States. The unique initiative is backed by Freddie Mac’s Tenant Advancement Commitment, which offers competitive financing to operators who agree to maintain or enhance affordability for the duration of the loan purchased by Freddie Mac at properties that do not have regulatory rent restrictions.
Freddie Mac has already purchased $86 million dollars in loans originated by Bellwether on behalf of Comunidad through its lending facility.
Bellwether funded and Freddie Mac purchased the first two loans under the Tenant Advancement Commitment earlier this year: Oaks at Holcomb Bridge in Roswell, GA and Metro 7000 in Fort Worth, TX.
“Freddie Mac’s Tenant Advancement Commitment is preserving affordable rents and providing essential social services that benefit entire communities,” said Deborah (Debby) Jenkins, executive vice president and head of Multifamily for Freddie Mac.
“Comunidad and Bellwether are pioneers in this effort, and we are so proud to have found an innovative financing structure that will accelerate their efforts in alignment with our new Multifamily Equity initiative to advance tenant interest.”
As part of the arrangement, Comunidad is also providing social services at each of the properties financed to support resident health and wellness, youth and adult education, and economic advancement.
“The need to create and preserve affordability in housing while simultaneously integrating environmental, social and governance (ESG) principles into our communities at scale was the thrust behind crafting this innovative capital markets product in partnership with Freddie Mac,” said Antonio Marquez, managing partner at Comunidad.
“We anticipate this new social impact financing commitment will pave the way for thousands of workforce / affordable units to remain affordable, with the added benefit of improved social impact outcomes for our residents in the years ahead.”
Anthony Tarter, who structured the arrangement as executive vice president and director of Workforce Housing and Social Impact for Bellwether, said, “Preserving naturally occurring affordable housing for the missing middle class of America and facilitating social impact services for tenants has always been a goal of mine.
“Antonio Marquez of Comunidad and Freddie Mac are committed to this mission and together, our efforts will result in the preservation of thousands of multifamily units across numerous states.”
Comunidad is a women- and minority-owned real estate investment firm that specializes in workforce and affordable housing in culturally diverse neighborhoods.
The company specializes in revitalizing affordable and workforce apartments in infill locations and implementing its specialized cultural management platform, which includes cultural upgrades, community investment initiatives, and ESG / social impact programs.
Comunidad has invested in more than 40 communities throughout the country, totaling more than 11,000 workforce and affordable housing units, and plans to continue to expand its portfolio across the Sun Belt regions.
Source: Done Deals Blog: https://alex-donedeals.blogspot.com/2021/09/freddie-mac-bellwether-and-comunidad.html