Red Stone Closes Two Multifamily Financing Transactions
December 1, 2010
New York, NY – Red Stone Partners, a national real estate finance company focused on providing capital to the multifamily housing industry, today announced the closing of two affordable housing transactions through the direct purchase of fixed rate tax-exempt bonds. Red Stone has additional capacity of $250,000,000 to provide financing to multifamily owners and developers and is actively seeking new originations.
Recently closed transactions include:
The Orchards Apartments is a 220-unit affordable, family property located in Kansas City, Missouri. Red Stone acquired and restructured $9,180,000 of tax-exempt bonds to facilitate a refinancing of the property. The Orchards, built in 2005, offers a mix of one and two-bedroom floor plans with amenities including a fitness center and swimming pool.
Flipper Temple Apartments is a 163-unit multifamily property located in Atlanta, Georgia. The property benefits from a long-term Section 8 HAP contract and has historically operated at 100% occupancy. Red Stone is providing financing through the direct purchase of $9,600,000 of tax-exempt bonds. Equity was provided through the syndication of approximately $7,140,000 low income housing tax credits. The property will undergo a substantial rehabilitation totaling approximately $44,500 per unit.
Both transactions, funded through Red Stone’s tax-exempt bond purchase program, provide non-recourse financing with flexible terms and maximum proceeds at competitive interest rates.
Red Stone has committed to close an additional $70,650,000 in tax-exempt financings before year-end 2010. 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.