Red Stone Partners Provides $10,000,000 in Tax-Exempt Financing for the Preservation of Affordable Multifamily Housing in St. Petersburg, Florida
August 28, 2015
NEW YORK, N.Y. — Red Stone Tax Exempt Funding (“Red Stone”) recently closed the following tax-exempt bond transaction via its Direct Bond Purchase Program:
An affiliate of Red Stone acquired $10 million of tax-exempt bonds, the proceeds of which will provide mortgage capital for the construction and permanent financing of Peterborough Apartments (“Peterborough” or the “Property”), a 150-unit senior’s affordable housing development in St Petersburg, Florida. The acquisition and rehabilitation of Peterborough is being sponsored by Blue Sky Communities of Tampa FL, an affordable housing development firm that focused on the preservation of HUD-subsidized properties.
Under this transaction, a Red Stone-sponsored fund structured and acquired tax-exempt bonds that were issued by the Florida Housing Finance Corporation. An additional $6.37 million of project capitalization was provided via the institutional sale of Low Income Housing Tax Credits. In conjunction with this recapitalization, the Property also received a 20-year renewal of its Section 8 HAP Contract that provides rental assistance payments for all of the Property’s tenants.
The residents of Peterborough will also benefit from extensive upgrades to the Property, including significant interior improvements to kitchens, bathrooms, and utilities infrastructure, as well as common-area improvements to the Property and the creation of handicap accessible units.
James Spound, President of Red Stone, noted that Peterborough, built in 1981, was an outstanding, well-managed but tired property that has, over many years, successfully served an elderly population of modest means. He further stated that, “The Property and its existing tenants will now benefit from the bond and LITHC recapitalization, along with a highly capable ownership/management team. This transaction will help the Property remain on a strong economic footing and in good physical condition for many years.
About the Company:
Red Stone is a national real estate finance company focused on providing innovative financial products to owners and developers of affordable multifamily housing nationwide. Red Stone’s core products include: tax-exempt bond financing, tax credit equity syndication, and HUD FHA-insured lending. For more information, please visit www.redstoneco.com.