News - 2007
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2007-010
RED Provides Equity Financing for Multifamily Property in California
Acquisition Represents Largest Affordable Housing Project in History of Thousand Oaks
Columbus, OH, May 29, 2007— Red Capital Markets, Inc. (MEMBER FINRA/SIPC), the investment banking entity of comprehensive capital provider RED CAPITAL GROUP, provided $11,679,488 in low income housing tax credit equity for the acquisition/rehabilitation of a multifamily property in Thousand Oaks, California.
The Shadows Apartments, a 148-unit development sponsored by WESPAC Management Group, Inc. ("WESPAC") consists of 11, two-story, garden-style apartment buildings. Approximately $17,100 per unit in hard costs will be spent toward rehabilitation efforts to include a new 1,200 square foot community building with kitchen and computers, replacement of central water heaters and circulation pumps, repair and replacement of sidewalks and internal pedestrian paths, as well as any needed refurbishment/replacement of unit floors, cabinets, refrigerators, and carpets. Unit amenities include dishwasher, disposal, refrigerator, and patio/balconies, and an additional half-bath in the two-bedroom units. The property will benefit from a $6.9 million soft loan from the City of Thousand Oaks. The financing will provide a significant reduction in rents comparable to market. Once renovations have been completed, 45 of the units will be restricted and reserved for households earning 50% of Area Median Income and 102 units will be restricted and reserved for households earning 60% of the Area Median Income in Ventura County.
WESPAC Management Group, Inc., formed in 1993 and with a current portfolio of twenty one managed properties, will serve as developer and will continue to manage the subject as it has done since 1996. To facilitate the financing, WESPAC partnered with the Area Housing Authority of the County of Ventura ("AHA"), an experienced local non-profit developer who will assist with the development process and will serve as managing general partner, enabling the project to qualify for an abatement of real estate taxes.
