News - 2006
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2006-051
Comprehensive Financing Provided for Development of Affordable Seniors Housing Property in Texas
Hometowne at tomball is RED's 14th Transaction with Principal
Columbus, OH, December 4, 2006 - Various entities of comprehensive capital provider RED CAPITAL GROUP recently provided financing for a to-be-built seniors housing community in Texas. The sponsor of the new construction project is Integrated Real Estate Group ("Integrated") in partnership with an entity owned by Comunidad Corporation, a non-profit Texas corporation and community housing development organization.
Located in Tombal, Texas, approximately 30 miles northwest of downtown Houston, Hometowne at Tomball will consist of 84 one-bedroom and 126 two-bedroom units within one, 3-story residential building. Unit amenities will include a refrigerator, dishwasher, range, patio/balcony, washer/dryer connections, and units will be internet/cable ready. Common area amenities on the 16-acre site will include a clubhouse with kitchen, fitness center, walking trail, swimming pool, and laundry facility. Various educational supportive service programs will be provided by Comunidad Corporation. Once completed, 100% of the units will be affordable to seniors (age 55+), with five of the units rent-restricted and reserved for residents earning no more than 50% of Area Median Income (AMI), and the remaining 205 units rent-restricted and reserved for residents earning no more than 60% of AMI.
Red Capital Markets, Inc. (MEMBER FINRA/SIPC) served as equity placement agent for an allocation of $7,499,780 in low income housing tax-credits (LIHTC), and as bond underwriter for $9,615,000 of fixed-rate, tax-exempt bonds issued through Harris County Housing Finance Corporation. Additionally, Red Capital Markets, Inc. arranged the interim credit enhancement on the bonds via a National City Corporation standby letter of credit and arranged a $1,700,000 construction loan through affiliated entity Red Capital Community Development Company, LLC. Red Mortgage Capital, Inc., a top ten Fannie Mae DUS lender, provided a $9,615,000 Fannie Mae DUS-Forward Commitment for the permanent credit enhancement.
Hometowne at Tomball is the 14th transaction undertaken by RED with Richard E. Simmons, President and CEO of Integrated. Mr. Simmons has more than 20 years of real estate experience and has developed 24 multifamily properties totaling over 7,000 units. Integrated, headquartered in Southlake, Texas, is a comprehensive service company that provides development, architectural and engineering management services.
David C. Martin, Senior Managing Director of Red Capital Markets, Inc. said, "Hometowne at Tomball represents another successful transaction between Red Capital and the Principals of Integrated Real Estate Group. By providing a one stop shop, Red Capital was able to efficiently work through the various complications that arose during the development process. Once complete, Hometowne at Tomball will provide a high quality affordable housing solution for the senior population of Tomball."
