Red Stone Tax Exempt Funding Provides $18,950,000 In Tax-Exempt Financing in Philadelphia
October 18, 2012
NEW YORK, N.Y. - Red Stone Tax Exempt Funding (“Red Stone”) announced that it recently closed the following tax-exempt bond transaction through its Direct Bond Purchase Program:
Red Stone structured and acquired $18.95 million of tax-exempt bonds, the proceeds of which will provide renovation and permanent financing for Opportunities Towers (the “Property”), a 277 unit Section 8-assisted seniors property in Philadelphia, PA. The property is owned and being rehabilitated by an affiliate of Opportunities Industrialization Centers of America, Inc, (“OIC”), a nationwide non-profit organization founded by Rev. Leon H Sullivan, providing quality education, training, employment, and housing services for economically disadvantaged people. The bonds were issued by the Philadelphia Authority for Industrial Development. R4 Capital, Inc. will also invest approximately $13 million in the property through its sponsorship of a Low Income Housing Tax Credit limited partnership. Diamond Associates and Robert C. Jacobs Consulting both advised OIC on the structuring of the transaction. The Property operates under a long term HAP Contract which provides rental assistance payments for the tenants.
“Opportunities Towers was originally constructed in 1982 and has provided a comfortable community to low income seniors of North Philadelphia for many years,” stated Cody Langeness, a Managing Director of Red Stone. Mr. Langeness further explained that, “The Property has been in need of modernization for some time and it has taken years of effort by OIC and its development team to raise the capital to bring this renovation to fruition. In fact, Opportunities Towers was originally planned to be renovated and refinanced in 2008 with different capital partners who were unable to perform following the collapse of the financial markets.” Langeness went on, “Red Stone was pleased to be part of the solution and the ultimately successful financing of Opportunities Towers which occurred only due to the unwavering commitment of OIC. The development team will now be able to complete the renovation that they have envisioned for the past four years.”
The property will benefit from approximately $50,000 per unit in renovation work. The renovations will provide the tenants with an upgraded unit and a substantial upgrade to the common areas and building systems. “Everyone at the property is very happy that the planned renovations are finally underway." said Ronald J Harper, Esq. President of the OIC affiliate, the Leon H Sullivan Housing Opportunities Corporation. "We were very pleased with the entire financing team. Red Stone worked with us every step of the way and helped us structure a great transaction that will benefit this community immensely."