News - 2007
2009 | 2008 | 2007 | 2006 | 2005
070671
Red Capital Finances First Phase of HOPE VI Community Sponsored by City of Beaumont, Texas
Regent I Groundbreaking Ceremony
Beaumont, Texas
Columbus, OH, September 10, 2007 — Red Capital Markets, Inc. (MEMBER FINRA/SIPC), the investment banking entity of comprehensive capital provider RED CAPITAL GROUP, syndicated approximately $8.1 million low income housing tax credits ("LIHTC") for the new construction of Regent I in Beaumont, Texas.
In addition to the LIHTC, Regent I is financed with $11.5 million in tax-exempt bonds issued by BHC Redevelopment Corporation, and a $7.3 million subordinated cash-flow loan. The subordinate loan was sourced from a $20 million HOPE VI grant made by HUD to the Housing Authority of the City of Beaumont ("BHA") for the revitalization of the neighborhood surrounding the Regent I site.
Regent I will consist of 160 one-, two-, and three-bedroom apartment units housed in 35 residential buildings, and situated on 11.89 acres. All of the apartment units will be rent-restricted and reserved for households earning no more than 60% of Area Median Income. Additionally, seventy apartment units will receive public housing subsidy and will therefore serve households that qualify for rental assistance. The subsidy is funded by HUD through BHA, in connection with the aforementioned HOPE VI grant.
Each apartment unit will offer a range, refrigerator with icemaker, dishwasher, microwave, disposal, washer/dryer connections, window treatments, ceiling fans, and covered patio or balcony. Common amenities will include a clubhouse with a business center and fitness center, sports courts, a coin-operated laundry, and social activities. The property will be secured by access gates and 911-call posts. A newer community center is adjacent to the Regent I site, providing access to a public pool and organized sports.
The project is sponsored by BHA through its affiliate entities, and by Carleton Residential Properties ("Carleton"). Carleton is a real estate development and consulting firm with substantial expertise in the development of HOPE VI and LIHTC properties.
Robert L. Reyna, CEO of BHA, wrote, "The best way to insure that investors and taxpayers maximize the return on their investment in affordable housing initiatives is to ensure that properties are financed, developed and managed by the best professionals available. Our partnership with Red Capital and Carleton demonstrates that the Housing Authority of the City of Beaumont takes its fiduciary, development and management responsibilities very seriously. We are very proud to partner with two of the most outstanding professional groups in their field. The greatest beneficiaries of this new community however, will be the clients served and the City of Beaumont, Texas!"
R. David Kelly, a principal at Carleton, said: "We always enjoy the opportunity to partner with Red Capital. While it is rare that a specific syndicator’s participation is essential to a successful transaction, Red played a key role in helping Regent I close. Specifically, Red’s familiarity with HOPE VI funding, willingness to explore innovative solutions when appropriate, and ability to engender trust and confidence was crucial."
David C. Martin, Senior Managing Director of Red Capital Markets, Inc., said, "Mr. Reyna’s inspired leadership and dedication have spurred BHA to new achievements – notably, Regent I is BHA’s first use of LIHTC financing. BHA is on a trajectory that will lead to higher-quality affordable housing in Beaumont, and its progress is accelerated by partnering with Carleton. Carleton has consistently demonstrated excellence and resourcefulness in relationships with Texas housing authorities, and BHA couldn’t have chosen a better partner. We’re proud to be on this team."
