Red Stone Announces Recent Tax-Exempt Multifamily Bond Transactions
October 28, 2010
New York, NY – Red Stone Partners, a national real estate finance company focused on providing capital to the affordable multifamily housing industry, today announced recent activity in their tax-exempt multifamily bond financing program. Red Stone remains actively involved in providing tax-exempt financing to the affordable housing industry and continues to seek acquisition opportunities to add to their portfolio.
Red Stone recently acquired $30.26 Million in unrated multifamily housing bonds financing stabilized 4% low income housing tax credit (LIHTC) properties located in California and Texas. In addition, Red Stone has committed to close a total of $90.34 Million in tax-exempt financings for the fourth quarter of 2010. The five separate transactions include tax-exempt bonds issued to finance 1,541 apartment units located in four states. The properties include a combination of “80/20” market rate transactions, 4% LIHTC bond transactions and preservation transactions with HUD Section 8 HAP Contracts. Financing terms range from 5 to 18 years.
“We have seen an increase in the number of developers using tax-exempt bonds as a primary source of financing affordable housing projects in the second half of 2010 and expect the trend to continue in 2011” said Jim Gillespie, Managing Director of Red Stone.
“One of the primary benefits of our direct bond purchase structure is that it saves time and reduces uncertainty. The majority of the deals we have under contract will close within 60 days of executing a letter of intent”, added Cody Langeness, Vice President.