News - 2008
2006-031
RED Provides $12.5 Million FHA Insured Loan and Bond Underwriting on Ohio Property
Columbus, OH, August 1, 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 of an affordable property in Cincinnati, Ohio.
Gateway Plaza, formerly known as Uptown Towers, built in 1975, houses 348 units plus commercial space in two 17-story buildings, and is 100% Section 8 assisted. The financing will allow for the acquisition of the property as well as major in-unit improvements including kitchen and bathroom remodeling, replacement of refrigerators, ranges, garbage disposals, and doors, dishwasher and security system installation, addition of handicap accessible units and balcony enclosures. Exterior improvement plans include boiler and roof replacement, sealing, repairing and repainting, elevator upgrades and redesign of the plaza area.
The financing structure included an FHA Section 221(d)(4) insured loan commitment totaling $12,500,000 processed by Red Mortgage Capital, Inc., in conjunction with the HUD Columbus Office. Bond underwriting services provided by Red Capital Markets, Inc.include $12,500,000 in tax exempt bond financing backed by a Ginnie Mae credit enhancement. The Ohio Housing Finance Agency served as the bond issuer of the fixed rate bonds, which mature in 2048.
The sponsor is Mid-City Financial Corporation, a privately owned corporation located in Maryland. Mid-City and its principals have over 38 years experience in major redevelopment projects and since its inception in 1965 has developed and rehabilitated over 15,000 apartments.
John L. Wall, President of Mid-City Financial said, "We are very pleased to form part of the team whose collaborative efforts resulted in the preservation and rehabilitation of this valuable affordable housing resource."
Tracy W. Peters, Managing Director of Red Capital Markets, Inc. commented, "The team at Mid-City Financial Corporation has long been known for their commitment to affordable housing. Gateway Plaza is another example of their extraordinary commitment."
