DEAL OF THE DAY: Red Stone Buys Bonds Worth Over $14M to Acquire, Renovate 269 Rental Units
- Jun 05, 2008
By Anuradha Kher, Online News EditorCincinnati–Red Stone Partners recently closed on the direct purchase of $14,128,000 of 5.85 percent fixed rate tax-exempt bonds. The proceeds from the bonds will be used to acquire and renovate two properties located in Cincinnati containing a total of 269 multifamily rental units. The properties benefit from long-term project based Section 8 HAP contracts. Equity was raised through the sale of 4 percent Low Income Housing Tax Credits (LIHTC).The transaction combined acquisition/rehabilitation and permanent financing.Red Stone provided the borrower with a single source of bond financing to fund the acquisition and renovation of the property as well as non-recourse permanent financing at a very competitive fixed rate.