News - 2005

Columbus, OH, October 11, 2005 – Red Capital Markets, Inc. (MEMBER FINRA/SIPC), the investment banking arm of comprehensive capital provider RED CAPITAL GROUP, recently structured and underwrote a $6,800,000 issue of tax-exempt bonds for an affiliate of the Columbus Metropolitan Housing Authority ("CMHA").

Jenkins Terrace Apartments is a 100-unit, four story community for elderly residents that is being built in downtown Columbus, Ohio. The modern, elevatored and air-conditioned structure will be comprised of one-bedroom units when it is completed in late 2006. The new project will be operated as a public housing community, financed with a combination of public housing capital grant funds, low income housing tax credits and tax-exempt housing revenue bonds. Rents for qualified residents, including utilities, will not exceed 30% of a resident’s annual income.

The project is unique in that it replaces an outdated 11-story building that had occupied the site previously. The functionally obsolete prior building was removed after receiving approval from the U.S. Department of Housing and Urban Development. Relocated residents from the prior building will receive first priority to move into the new property.

The financing structure was devised and implemented for CMHA by Red Capital Markets, Inc., who provided bond underwriting services, and Ohio Capital Corporation for Housing, who syndicated 4% tax credits to benefit the project. The County of Franklin served as issuer of the $6.8 million in tax-exempt bonds. As a result of the financing, the new property also will benefit from enhanced replacement reserve funds, which will help sustain its ongoing viability as a future source of affordable housing for seniors.

Metropolitan Housing Partners, Inc. ("MHP"), an affiliate of CMHA, is the managing member of the owning entity created to develop the project. CMHA has 65 years of experience in managing public housing projects and currently manages approximately 3,500 units in 27 public housing projects.

Dennis Guest, Executive Director of the Columbus Metropolitan Housing Authority said, "This financing came together extremely well. We are pleased with the results and plan to duplicate a similar transaction which will provide quality affordable senior housing for residents in another neighborhood of Columbus ."

Tracy Peters, Managing Director of Red Capital Markets, Inc. said, "This property exemplifies CMHA's continued commitment to the housing needs of Columbus. They leveraged existing financing resources to build what will be an affordable senior housing asset to the near east side of Columbus for years to come."