News - 2006

Columbus, OH, December 4, 2006- Red Mortgage Capital, Inc. and Red Capital Markets, Inc. (MEMBER FINRA/SIPC), the mortgage and investment banking entities, respectively, of comprehensive capital provider RED CAPITAL GROUP, recently structured debt and equity financing for a property being developed in the City of Coronado by the San Diego Interfaith Housing Foundation ("SDIHF").

Coronado Senior Housing Apartments is being built pursuant to a ground lease between the City of Coronado and the SDIHF. The 30-unit property will consist of one-bedroom units in five 2- and 3-story buildings, connected by breezeways and creating a landscaped inner courtyard and terrace. The units will be offered at affordable rents to qualifying seniors residents at least 55 years old and earning no more than 50% or 60% of Area Median Income levels. Each unit will have a deck or patio and the community will be managed by Interfaith Housing Assistance Corporation, the property management affiliate of SDIHF.

Red Mortgage Capital, Inc., utilizing a Direct Bond Purchase structure, acquired the unrated, tax-exempt bond issued in conjunction with the project, thereby providing $4,131,000 of construction financing and a commitment for $1,196,000 of permanent financing upon construction completion in 2008. Red Capital Markets, Inc. syndicated $3.2 million of low income housing tax credits that had been allocated to the property. In addition to the land lease, the City of Coronado provided an additional loan of $3.49 million to pay for construction and other expenses.

With only one major apartment complex in the area, and most existing properties being of fewer than 20 units built in the 1930's-1960's, the 14-square mile "island" of Coronado has an exceptionally high demand for seniors housing. Matthew Jumper, President of San Diego Interfaith Housing Foundation said, "RED proved to me on this transaction that they are an outstanding lender and tax credit investor. Their team is extremely talented, conscientious and professional and I look forward to more transactions with them." SDIHF is a 501(c)(3) non-profit corporation. Originally founded by local churches in 1968 to serve the needs of San Diego residents, they have developed more than 13 properties and 1,000 affordable housing units. They finance, own and operate all of their affordable housing properties, which have a market value of approximately $100 million.

Evan E. Becker, Managing Director of Red Capital Markets, Inc. and lead equity banker for the transaction said, "It's a pleasure to work with Matt and bring comprehensive financing tools to one of the finest non profits in our community. The City of Coronado was outstanding in their support, and SDIHF was the perfect choice to deliver the quality project they expect."

Nicholas A. Hamilton, Managing Director of Red Capital Markets, Inc . and lead banker for the bond transaction added, "We were pleased to be involved in the bond financing through a direct purchase execution, as the fixed costs associated with a public bond offering would have been significant in light of the relatively modest bond amount. The property will be a tremendous asset to the City and residents of Coronado."