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Red Stone Purchases Tax-Exempt Bonds on Five Affordable Housing Properties in Tennessee, Illinois and Pennsylvania

June 2, 2011

New York, NY – Red Stone Partners, a national real estate finance company providing debt and equity capital to the affordable multifamily housing industry, announced the closing of several recent affordable housing transactions utilizing their tax-exempt bond private placement program.

Red Stone’s debt platform focuses on the purchase of unrated tax-exempt bonds. Proceeds from the sale of the bonds are used to acquire, renovate and refinance affordable multifamily properties and portfolios. Red Stone’s private placement program provides developers with an attractive alternative to agency financing with more flexible terms and greater certainty of execution.

Each of the following recently closed transactions involved the purchase of tax-exempt bonds on 4% low income housing tax credit (LIHTC) affordable housing properties.

  • Chippington Tower I and II. Red Stone purchased $18,000,000 of fixed rate tax-exempt and taxable bonds issued to refinance two properties containing 426 units of senior Section 8 housing in Madison, TN.
  • Lincoln Towers. Red Stone purchased $8,190,000 of fixed rate tax-exempt bonds issued to finance two properties containing 202 units of senior Section 8 housing in Bloomington, IL and Freeport, IL.
  • Hilltop Apartments. Red Stone purchased $6,885,000 of fixed rate tax-exempt bonds issued to finance a 200 unit multifamily Section 8 property in Edwardsville, PA.

Red Stone is actively looking to purchase newly issued tax-exempt bonds to finance the acquisition and renovation of 4% LIHTC affordable housing properties as well as acquire tax-exempt multifamily bonds and bond portfolios on the secondary market from existing lenders and investors. Red Stone also provides highly competitive acquisition financing for developers who are acquiring properties financed with tax-exempt debt, including both 80/20 properties and 501c3 bond financed multifamily properties and portfolios.