Red Stone Tax-Exempt Funding Provides $49,830,000 in Tax-Exempt Bond Financing for the New Construction and Preservation of 491 Affordable Rental Units During July 2016
During the month of July, Red Stone Tax-Exempt Funding ("Red Stone") successfully structured and closed three tax-exempt bond transactions totaling $49.83MM via its Red Stone Direct investment platform. These investments will provide debt financing for the new construction and preservation of affordable rental communities in California, Colorado, and Texas. Cody Z. Langeness, President of Red Stone, commented, "We are proud of the effort and cooperation which was necessary to ensure the efficient closing of these transactions. Despite each property being located within a unique geographic location, all three transactions were closed within a 30-day period. Most importantly, these high-quality developments will introduce much-needed affordable rental units into their respective communities."
Red Stone provided $17,150,000 for the preservation of St. Timothy's Tower & Manor, a 135-unit senior citizen Section 8 rental property in Los Angeles. The transaction was sponsored by Blue Green Preservation & Development, LLC. In addition to Red Stone's tax-exempt bond investment, approximately $7,500,000 of equity capital was invested through the purchase of federal low-income housing tax credits ("LIHTCs") allocated to the transaction. This transaction involved a 20-year extension of the property's Section 8 Housing Assistance Payment ("HAP") contract, ensuring long-term affordability for its senior citizen tenants. The property's tenants will benefit from an extensive rehabilitation totaling over $40,000 per unit.
Red Stone provided $15,450,000 for the new construction of Centennial Park Apartments, a 140-unit affordable multifamily rental community in Longmont. The transaction was sponsored by Summit Housing Group, Inc. The development's financing structure also included state and federal LIHTC equity capital totaling approximately $14,560,000 and $4,000,000 of Disaster Recovery Funds provided by the State of Colorado Department of Local Affairs. Centennial Park Apartments will be one of the first newly constructed affordable communities in northern Colorado, an area which suffered immense damage as a result of severe flooding during 2013. The property will introduce a much-needed supply of affordable rental housing for residents earning between 40% and 60% of the area's median income.
Red Stone provided $17,230,000 for the new construction of Sansom Pointe Apartments, a 216-unit affordable senior citizen rental community in Sansom Park. The transaction was sponsored by LDG Development, LLC. The property's financing structure included approximately $12,270,000 of equity capital invested through the purchase of federal LIHTCs allocated to the transaction. The property will provide senior citizens in the Fort Worth metropolitan area with an affordable rental option featuring modern in-unit amenities and on-site community offerings such as an arts-and-crafts room, a fitness center, a swimming pool, a resident-services coordinator office, and a health-screening room.
Via the Red Stone Direct tax-exempt bond investment platform, Red Stone was able to provide competitive financing facilities for these transactions while minimizing costs and delivering on its certainty-of-execution guarantee. Brian A. Renzi, Red Stone's Managing Director, added, "Red Stone is proud to have provided tax-exempt bond financing that will facilitate the creation and preservation of these high-quality developments. All will be great additions to our growing portfolio of tax-exempt bond investments supporting affordable rental communities nationwide."
About the Company:
Red Stone is a national real estate finance company which specializes in tax-exempt bond financing. Red Stone Tax-Exempt Funding LLC—through its Red Stone Direct platform—is a direct purchaser of tax-exempt bonds used for the construction, preservation, and refinancing of affordable multifamily properties nationwide. In addition to Red Stone's core tax-exempt bond business, the firm also offers bridge lending, mezzanine financing, and other creative financial products for the affordable housing industry.
For more information, please visit our website at www.redstoneco.com.
Cody Z. Langeness / Brian A. Renzi