News - 2006
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2006-013
RED CAPITAL GROUP Provides Debt and Equity for Affordable Seniors Property in San Diego
Columbus, OH, April 24, 2006— Comprehensive capital provider RED CAPITAL GROUP recently arranged a financing package for a to-be-built seniors development in the City Heights neighborhood of San Diego, California. The financing package includes the syndication by Red Capital Markets, Inc. (MEMBER FINRA/SIPC) of $20,729,610 of LIHTC Tax Credit Equity, a $13,500,000 construction loan and a $2,100,000 Fannie Mae DUS™ forward commitment from Red Mortgage Capital, Inc., a top ten Fannie Mae DUS lender.
City Heights Square Apartments will consist of 71 studio and 79 one-bedroom seniors units in one, five-story building located on a 0.706 acre site. Unit amenities will include a refrigerator, range, dishwasher, patio or balcony and storage area. City HeightsSquare residents will enjoy a community room with full kitchen, computer room, laundry room on each floor, and outdoor barbecues. In addition, a full array of services will be provided to cater to the needs of the senior residents.
Upon completion, which is anticipated in September of 2007, 100% of the property rents will be affordable to qualified residents aged 62 years and older who earn no more than 30% to 45% of area median income.
City Heights Square Apartments is being developed by Chelsea Investment Corporation, one of California ’s most prominent developers of affordable and seniors housing. Chelsea ’s combined efforts with San Diego non profit Senior Community Centers of San Diego, with significant assistance from the City of San Diego Redevelopment Agency, will add a crucial seniors housing component to one of the City’s most important redevelopment areas.
James J. Schmid, Chief Executive Officer ofChelsea Investment Corporation said, "We were very pleased with the terms and conditions of the financing provided by Red Capital to facilitate the development of this important project. We appreciate the economies and efficiencies of obtaining construction, permanent and equity financing from Red’s one-stop facility."
Evan E. Becker, Director of Red Capital Markets, Inc. said, "Bringing all our financing tools to a valued partner like Chelsea and to such a critically important project in RED’s own community gives us a tremendous feeling of satisfaction. There’s no greater priority for us."
