News - 2008
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RED Provides $6.8 Million LIHTC Equity and $2.8 Million Fannie Mae Acquisition/Rehab Financing for Affordable Property
Royal American To Develop The Rivers Apartments in Bainbridge, Georgia
The Rivers Apartments
Bainbridge, Georgia
Columbus, Ohio, June 17, 2008 — Red Capital Markets, Inc. (MEMBER FINRA/SIPC) and Red Mortgage Capital, Inc. respectively, the investment and mortgage banking entities of comprehensive capital provider RED CAPITAL GROUP, recently syndicated $6,815,000 in low income housing tax credit equity and provided a $2,850,000 Fannie Mae DUS loan for the acquisition and rehabilitation of The Rivers Apartments, a HUD subsidized family community located in southwest Georgia.
Originally constructed in 1981, The Rivers Apartments sits on over 15 acres and is comprised of twenty-four, one-story residential buildings containing a total of 114 total units, plus a one-story community building. The residential buildings will undergo extensive interior and exterior renovations totaling $27,246 per unit. Renovation of each residential unit will include replacement of all plumbing and lighting fixtures, kitchen and bathroom cabinetry, appliances, flooring, all HVAC units, and all windows and exterior doors. Exterior and site renovations will include replacement of all building roofs, siding and stucco repairs, a new walking path with benches, a community garden, and a new pavilion for the picnic area. There will also be a new fitness center, library and computer center added to the existing community building.
In addition to the $6.8 million in federal tax credit equity and the Fannie Mae immediate financing provided by Red Capital, the renovation project will be funded by $2,044,650 of Georgia State Tax Credits syndicated by Atlanta-based Tower Tax Credits, LLC.
Royal American Development, LLC has 40 years of multifamily development experience spanning 112 residential communities. Royal American Construction, Inc. will handle renovations to the property and Royal American Management, Inc. will manage the property.
Alison Kerr-Hull Colvard, Vice President of Red Capital Markets, Inc. said, "It was a pleasure working with a sophisticated developer and borrower such as Royal American. Their willingness to work to get the job done and commence rehab on this property is a testament to the commitment of the organization and their key personnel."
