News - 2008
2005-031
RED CAPITAL GROUP Provides LIHTC Equity for Housing Authority Redevelopment Effort in Texas
Columbus, OH, September 27, 2005 — Red Capital Markets, Inc. (MEMBER FINRA/SIPC), the investment banking arm of comprehensive capital provider RED CAPITAL GROUP, recently financed $9,000,150 in low income housing tax credits for a redevelopment project in Denton, Texas .
Construction has begun on Renaissance Courts (Renaissance), which is jointly sponsored by the Housing Authority of the City of Denton (the "Authority") and Carleton Residential Properties. Renaissance will replace an existing, vacant market-rate apartment property formerly owned by the Authority. The construction will include demolishing the current structures on the 12.57-acre site and building new, townhouse-style apartments that will be open for leasing in the second half of 2006. Approximately 80% of the units will be affordable to families earning between 30% and 60% of Area Median Income. Additionally, the Authority will commit fifteen project-based Section 8 vouchers to Renaissance.
The site is situated less than two miles southeast of Denton’s downtown, which is approximately forty miles northwest of Dallas . Upon completion, the project will consist of 150 one-, two- and three-bedroom units contained in eighteen two-story apartment buildings. Apartment units at Renaissance will be among the largest and best-appointed in town, and in-unit amenities will include laundry connections, microwave ovens, dishwashers, and nine-foot ceilings with ceiling fans in each bedroom. Community amenities will include a clubhouse containing a fitness room, business center, and laundry room, and also a swimming pool, covered pavilion with grills, community garden and walking trail near Pecan Creek.
Shirley Hensley, CEO of The Housing Authority of the City of Denton said, "The bankers at RED understand the unique needs of housing authorities and offer a suite of financing products designed to support affordable housing. Our vision at DHA was to redevelop a blighted site with new, high-quality housing that will offer a mix of affordable rents. RED embraced our vision from the start and structured predevelopment and equity financing that interlocked seamlessly with the other financing we had arranged. DHA is excited that construction of Renaissance Courts is now underway, and we appreciate the key role RED played in bringing our plan to realization."
The Housing Authority of the City of Denton administers the Section 8 voucher program for Denton County and provides low-income families with assistance for housing, services for their well-being, and life skills to promote self-sufficiency.
Carleton Residential Properties (Carleton) is a Dallas-based real estate development, finance, and construction firm that regularly provides co-development services to housing authorities. Carleton’s expertise at implementing high-quality design, construction, and management techniques in the affordable-housing sector has helped several housing authorities to improve the quality and image of their real estate portfolios.
