News - 2008
2006-041
Acquisition/Rehabilitation Financing on El Paso Multifamily Property Involves Equity from RED
Affordable Housing Units Located in Qualified Census Tract
Columbus, OH, October 2, 2006— Red Capital Markets, Inc. (MEMBER FINRA/SIPC), the investment banking entity of comprehensive capital provider RED CAPITAL GROUP, recently provided LIHTC equity to finance the acquisition and rehabilitation of a multifamily property in Texas.
Amberwood Apartments consists of 310 units housed within 22, two-story buildings. The property, originally constructed in 1964, is located in El Paso, Texas. Red Capital Markets, Inc. syndicated the property’s allocation of $5,160,381 in Low Income Housing Tax Credits. The equity proceeds will allow for significant renovations and improvements in all of the units as well as in common areas. Amberwood currently has a clubhouse, outdoor pool and playground. Upon completion of the renovations, which is anticipated in June of 2007, all units will be affordable to qualified residents who earn no more than 60% of area median income.
The developer, PacifiCap Properties Group, will provide all services needed to facilitate the completion of the property’s improvements. PacifiCap has an impressive portfolio of LIHTC acquisition/rehab product totaling 6,699 units throughout the southwestern United States.
Chad Rennaker, President of PacifiCap, considers this renovation a significant step forward in using standing real estate wisely and adds, "As with many cities throughout the United States, in El Paso it is becoming increasingly difficult to build new apartment units that are affordable to residents. We believe that improving the existing housing stock in the city is an excellent way to fill this need."
Dale E. Cook, Vice President of Tax Credit Originations for Red Capital Markets, Inc. added,"We are very pleased to add such a quality team of professionals as found at PacifiCap Properties Group to our family of affordable housing developer clients at Red. PacifiCap is a fully integrated housing provider bringing expertise in site acquisition, construction supervision, and property management, thereby facilitating a smoother transition for the residents during the rehabilitation process."
