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Deals & Dealmakers

Bellwether closes two loans totaling $49M

Bellwether Enterprise Real Estate Capital LLC (Bellwether Enterprise), the commercial and multifamily mortgage banking subsidiary of Enterprise Community Investment Inc. (Enterprise), today announced that it has recently closed two separate loans totaling $49.43 million using a Delaware Statutory Trust (DST) borrower structure with ExchangeRight, a provider of long-term, stable income and asset preservation to accredited investors eligible for Code Section 1031 and 1033 exchanges.

The two CMBS loan transactions include 24-asset and 17-asset portfolios which closed for $24.42 million on September 3, 2015 and $25.01 million on December 4, 2015 respectively.

The 10-year loans, which are interest-only for the term of the loans, are for the financing of commercial properties located across the United States and consist of investment grade corporate retailers such as Walgreens, Dollar General, Napa Auto, and CVS. Bellwether Enterprise has completed six successful DST financings with ExchangeRight over the last year.

“Delaware Statutory Trust deals are unique because they involve a trust structure that is particularly attractive to investors. Unlike a typical LLC, they provide great diversification, qualify for ‘like-kind’ exchange, and deliver a fixed income stream backed by commercial real estate,” said Mike Polencheck, senior vice president of Bellwether Enterprise. “While DST financing has been virtually untapped until now, we see an enormous amount of opportunity in the market for such lending as we look toward the future.”

David Fisher, Managing Member of ExchangeRight, commented, “Bellwether’s market knowledge and partnering approach has been invaluable as we continue to grow our offerings for accredited investors.”

Bellwether Enterprise provides flexible financing solutions for clients covering the entire spectrum of commercial and multifamily real estate.

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