NEW YORK--(BUSINESS WIRE)--Red Stone Tax-Exempt Funding (“Red Stone”) successfully structured and closed three tax-exempt and taxable bond transactions totaling $85.27MM via its Red Stone Direct investment platform. These investments will provide debt financing for the new construction of affordable rental communities in California, Texas, and Utah. Cody Z. Langeness, President of Red Stone, commented “We are proud of the effort and cooperation which was necessary to ensure the efficient closing of these transactions. Despite each property being located within a unique geographic location, all three transactions closed within a four day span. Most importantly, these high-quality developments will introduce much-needed affordable rental units into their respective communities.”
April 9, 2019: Red Stone provided $24,270,000 for the new construction of Cottages at Mission Trail, a 143-unit affordable multifamily community in Lake Elsinore. The transaction was sponsored by a joint venture between Civic Partners and AOF/Pacific Affordable Housing Corp. The development’s financing structure also included LIHTC equity capital of approximately $13,560,000 which was provided by Riverside Capital. The City of Lake Elsinore also provided $5,721,250 of soft funds to support the transaction. The property will provide a much-needed supply of affordable rental housing for residents earning between 50% and 60% of the area’s median income. Rents will be set at a level that will be approximately 40% lower than market rents of nearby properties, providing for an affordable solution for the low income residents of the area. Tax-Exempt and Taxable Bonds were issued by the California Statewide Community Development Authority.
April 11, 2019: Red Stone provided $25,000,000 for the new construction of Patriot Pointe Apartments, a 220-unit affordable rental community in Fort Worth. The transaction was sponsored by a joint venture between LDG Multifamily, LLC and Fort Worth Housing Solutions. The property’s financing structure included approximately $13,300,000 of equity capital invested through the purchase of federal LIHTCs allocated to the transaction by Enterprise Community Partners. LDG and Fort Worth Housing Solutions both invested soft funds for this transaction. Additionally, 22 of the apartments will be supported via a HAP Contract via HUD’s RAD Program. The property will provide low income residents in the Fort Worth metropolitan area with an affordable rental option featuring modern in-unit amenities and on-site community offerings such as an arts-and-crafts room, a fitness center, a swimming pool and multiple social services for the residents. Tax-Exempt Bonds were provided by an affiliate of Fort Worth Housing Solutions.
April 12, 2019: Red Stone provided $36,000,000 for the new construction of Red Rock at Sienna Hills Apartments, a 258-unit affordable multifamily rental community in the city of Washington. The transaction was sponsored by Triago Ventures. The development’s financing structure also included federal LIHTC equity capital totaling approximately $14,640,000 provided by AEGON USA Realty. Red Rock at Sienna Hills Apartments will be one of the first newly constructed affordable communities in the greater St. George, UT area. The property will introduce a much-needed supply of affordable rental housing for residents earning between 50% and 60% of the area’s median income. Tax-Exempt and Taxable Bonds were provided by the Utah Housing Corporation.
Via the Red Stone Direct tax-exempt bond investment platform, Red Stone was able to provide competitive financing facilities for these transactions while minimizing costs and delivering on its certainty-of-execution guarantee. Brian A. Renzi, Red Stone’s Managing Director, added “Red Stone is proud to have provided tax-exempt and taxable bond financing that will facilitate the creation of these high-quality developments. All will be great additions to our growing portfolio of bond investments supporting affordable rental communities nationwide.”
About the Company:
Red Stone is a national real estate finance company which specializes in tax-exempt and taxable bond financing. Red Stone Tax-Exempt Funding LLC—through its Red Stone Direct platform—is a direct purchaser of tax-exempt bonds used for the construction, preservation, and refinancing of affordable multifamily properties nationwide. In addition to Red Stone’s core tax-exempt bond business, the firm also offers bridge lending, mezzanine financing, and other creative financial products for the affordable housing industry.
For more information, please visit our website at www.redstoneco.com.