News - 2007
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2007-015
Villas at Mesquite Creek Receives $7.2 Million Equity Financing for To-Be-Built Affordable Multifamily Property
Villas at Mesquite Creek
Mesquite, Texas
(partial of rendering)
Columbus, OH, August 8, 2007 — Red Capital Markets, Inc. (MEMBER FINRA/SIPC), the investment banking entity of comprehensive capital provider RED CAPITAL GROUP, syndicated low income housing tax credits ("LIHTC") for the new construction of a multifamily property in Mesquite, Texas.
Villas at Mesquite Creek will consist of 252 affordable apartment units housed in twelve, three-story buildings with one-, two-, and three-bedroom options. The property will be situated in a desirable area and upon construction completion (slated for July 2008), all units will be restricted and reserved for households earning no more than 60% of Area Median Income. Common amenities will include a 2,505 square foot clubhouse with fitness center, business center, coin-operated laundry, swimming pool, children’s playground, sports court and social services operated by Common Threads – a local non-profit provider of social services. Each unit will boast high quality amenities including a dishwasher, microwave, garbage disposal, laundry connections, walk-in closets, window treatments, ceiling fans, patios or balconies, built-in bookcases in select units, and garages, carports and storage lockers for an extra fee.
Red Capital Markets, Inc. syndicated the property’s allocation of $7,159,530 in LIHTC, which was made available in conjunction with tax-exempt bonds issued by the Texas Department of Housing and Community Affairs.
The sponsor, One Prime, L.P., currently holds a portfolio of seven LIHTC properties including four properties now under construction. Hal T. Thorne is the principal owner of One Prime, L.P. and has been involved in a variety of commercial, retail, and residential development projects in the Dallas-Ft. Worth area for the past several decades. Affiliates of One Prime, L.P. will be the general partner and developer for Villas at Mesquite Creek. The general contractor will be Integrated Construction & Development, and the property manager will be Alpha-Barnes Residential Services.
One Prime, L.P.’s LIHTC development activities are directed by William B. Thorne. After closing Villas at Mesquite Creek, Mr. Thorne wrote, "We really appreciate Red Capital. Red Capital goes out of its way to make sure our deals are taken care of. We enjoy working with the folks at Red Capital and are looking forward to a long future of many more deals."
Regarding the transaction, Dale E. Cook, Vice President of Red Capital Markets, Inc. said, "The loan is DSC constrained, and the lender's funds were reduced as a result of rising interest rates. To remedy the problem, Red Capital restructured its equity at the closing table in an amount sufficient to balance the capital budget." Regarding the sponsor, Mr. Cook said, "One Prime develops a high-quality product and assembles an excellent team of professionals on each transaction, which makes for an effective and smooth closing process. We at Red Capital very much look forward to more projects with One Prime."
