News - 2008
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080248
Red Capital Markets Participates in Acquisition and Rehabilitation of Historic Colorado Property Using LIHTC Financing
The Cannery Apartments
Longmont, Colorado
Columbus, Ohio, June 16, 2008 — Red Capital Markets, Inc. (MEMBER FINRA/SIPC), the investment banking entity of comprehensive capital provider RED CAPITAL GROUP, syndicated low income housing tax credits for the acquisition and rehabilitation of a 94-unit family housing property owned by Thistle Community Housing of Boulder, Colorado.
The property, The Cannery Apartments, is located in the City of Longmont (named one of the "Best Places to Live" by Money Magazine in 2006). The Cannery is a complex of three buildings with a total of 94 rental apartments. The "Warehouse Building" is a National Historic Landmark built in 1905. Unit composition is 4 studio apartments, 55 one-bedroom units and 35 two-bedroom units. Five units will be set aside for households earning no more than 30% of Area Median Income ("AMI"), and 79 units will be set aside for households at the 50% AMI level. The remaining ten units will be set aside for households at the 60% AMI level, but the rents charged will be no greater than the 50% AMI rents.
The Cannery, located near downtown Longmont, was acquired by Thistle Community Housing through interim financing in February 2007. The property has a history of high occupancy, and amenities include a heated swimming pool, off street parking, and a recreation room with cable television, fireplace, kitchen, billiards and ping pong tables, an exercise room, and a whirlpool.
The Cannery consists of three buildings: Cannery West, Empson, and the historic Warehouse (a registered historic site). The Warehouse is a former cannery that was converted to multifamily housing in 1984. It is built of post and beam construction with a brick exterior. The Empson and Cannery West were both built in 1984/85 with brick exteriors matching the Warehouse. Rehabilitation began in May 2008, and will be completed in the spring of 2009. The rehabilitation will include new appliances and bathrooms in the majority of apartment units. Common and exterior replacements will include all new windows, tuck pointing, roof repair, trim replacement, painting, and a new perimeter fence.
Red Capital Markets, Inc. syndicated approximately $3,295,000 of 4% low income housing tax credits. The City of Longmont awarded a private activity bond allocation for the property, and the Colorado Housing and Finance Authority served as bond issuer.
Thistle Community Housing, a 25-year-old, private, non-profit real estate company, is committed to providing permanently affordable homes for working families, seniors, and people with disabilities. Thistle is the largest, private non-profit provider of permanent affordable housing in Boulder County, owning over 1,000 affordable homes and they have received a range of excellence awards in operation and design, including awards from United States Department of Housing and Urban Development, Colorado Office of Energy Conservation, Colorado Cross Disabilities Coalition (for accessibility), Colorado Chapter of the American Planning Association, and E-star and EXCEL Awards (for green building).
Thistle was assisted in developing The Cannery by Sarah Batt, Principal Consultant with Dwelling Development, LLC. After closing, Ms. Batt said of the transaction, "Red Capital committed to this project during a very tough market and we appreciate their expertise and experience."
Mary Roosevelt, CEO of Thistle Community Housing, said, "The Cannery is a part of Longmont's history and we appreciate our partnership with Red Capital and the City of Longmont, the Federal Home Loan Bank and the Colorado Division of Housing to preserve and enhance needed and unique housing in Boulder County."
Dale E. Cook, Director of Red Capital Markets, Inc., said, "We at Red Capital are honored and pleased to be partnering with a well managed, mission-driven non-profit organization providing excellent, affordable housing opportunities in Colorado. The staff at Thistle, as well as its chosen consultants, comprises a highly experienced and talented group."
