News - 2008
2006-029
RED Provides $14,130,000 in FHA Financing and Bond Underwriting for Rehabilitation of Three Section 202 Projects
Columbus, OH, July 10, 2006 – Red Mortgage Capital, Inc. and Red Capital Markets, Inc. (MEMBER FINRA/SIPC), respectively the mortgage banking and investment banking arms of comprehensive capital provider RED CAPITAL GROUP, structured the financing for the renovation of three seniors housing apartment complexes in southern California for National Church Residences.
Wysong Plaza Apartments, built in 1984, and Cypress Sunrise Apartments and Clara Park Commons, both built in 1987, collectively house 220 seniors units which were previously financed with Section 202 loans. The sponsor of the properties is National Church Residences ("NCR"), one of the nation’s largest not-for-profit developers of affordable senior and family housing. Since 1961, NCR has developed over 250 properties throughout the United States.
The financing structure included three FHA Section 223(f) insured loan commitments totaling $14,130,000 processed by Red Mortgage Capital, Inc. through the HUD Los Angeles Office. Red Capital Markets, Inc. who served as the bond underwriter, structured and sold $14,130,000 of GNMA enhanced fixed rate tax-exempt bonds issued by the California Statewide Communities Development Authority. In addition, $8,210,000 of unenhanced, taxable bonds were issued through the Authority to augment the financing. Red Capital Markets, Inc. worked closely with the tax credit syndicator, National Affordable Housing Trust, to coordinate all aspects of the financing.
As a result of the financing, more than $2,200,000 will be available for improvements to the properties. Some exterior improvements will consist of roof repair, painting, security camera installation, and entry call box installation. Mechanical repairs will include installation of new A/C wall units, roof mounted condensing units, and elevator upgrades. One of the properties will benefit from an activity room addition. The residents will also receive additional supportive services that will be funded from the financing.
Michelle Norris, Vice President of National Church Residences said, "We are very pleased with the renovations and services to our residents that will be made available as a result of this financing. The southern California market is in dire need of affordable housing and this transaction helps preserve and extend the life of Wysong Plaza, Cypress Sunrise, and Clara Park Commons. We are very pleased with the execution of the financing and look forward to continuing our relationship with Red Capital Group."
Tracy Peters, Managing Director of Red Capital Markets, Inc. said, "We once again appreciate the opportunity to work with the National Church Residences team, one of the best affordable housing providers in the country. We were able to bring to bear, for the benefit of NCR and its residents, our extensive experience with refinancing 202 properties and our integrated financing approach. We look forward to future opportunities to serve NCR."
