Red Stone Partners Provides $16,000,000 In Tax-Exempt Financing for the New Construction of 192 Affordable Multifamily Rental Units in Baton Rouge, LA
December 1, 2015
NEW YORK, N.Y. — Red Stone Tax-Exempt Funding LLC (“Red Stone”) recently closed the following tax-exempt bond transaction via its Direct Bond Purchase Program:
An affiliate of Red Stone acquired $16 million of tax-exempt bonds, the proceeds of which will provide mortgage capital for the new construction of Port Royal Apartments (“Port Royal” or the “Property”), a 192-unit multifamily affordable housing rental development in Baton Rouge, Louisiana. Scheduled to be complete by mid-2017, the Property will offer new, affordable rental units, equipped with modern in-unit appliances and various common-area offerings. Tenants will benefit from amenities including a laundry facility, a swimming pool, a playground, and community center with full kitchen, business center and fitness center. The new construction of the Property is being sponsored by LDG Development, a nationwide leader in the development of affordable housing properties via low-income housing tax credits (“LIHTC”) and other state and federal subsidies.
Under this transaction, a Red Stone-sponsored fund structured and acquired the tax-exempt bonds that were issued by the Louisiana Housing Corporation. The Louisiana Housing Corporation also contributed $1.5 million of debt capital via the HOME Investment Partnership Program. An additional $10.57 million of project capitalization was provided via the institutional sale of 4% federal LIHTCs via Stratford Capital Group. Louisiana-based First NBC Bank provided a standby letter of credit that will remain outstanding until Port Royal is constructed and stabilized.
Cody Z. Langeness, Managing Director of Red Stone, noted that Port Royal will provide a high-quality, affordable rental option for an important demographic within Baton Rouge and its surrounding areas. He further added that Port Royal represents LDG Development’s expansion in and commitment to the greater Baton Rouge area. Mr. Langeness stated “In addition to providing newly constructed rental units, inclusive of modern amenities, the property will be aesthetically attractive, and will be a great addition to the immediate neighborhood.”
Chris Dischinger, Co-Founder of LDG Development, noted that Red Stone’s Direct Bond Purchase Program allowed the company to maximize its investment in this new development. “Port Royal Apartments reflects our belief that everyone deserves a quality place to live,” said Dischinger. “Having a strong financing partner that supported our work and this belief is essential to our ongoing growth. Red Stone worked with us every step of the way and helped us structure a great development that will benefit this community for many years to come.”
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.