Red Stone Partners announced the closing of two affordable housing transactions through the direct purchase of fixed-rate tax-exempt bonds.
The firm acquired and restructured $9.2 million of tax-exempt bonds to facilitate the refinancing of The Orchards Apartments, a 220-unit family development in Kansas City, Mo. Built in 2005, the property offers a mix of one- and two-bedroom apartments plus a fitness center and a swimming pool.
The second transaction involves Flipper Temple Apartments, a 163-unit property in Atlanta. The development has a long-term Sec. 8 Housing Assistance Payment (HAP) contract and has historically operated at 100 percent occupancy.
Red Stone reported that it is providing financing through the direct purchase of $9.6 million of tax-exempt bonds. Equity was provided through the syndication of $7.1 million in low-income housing tax credits (LIHTCs).
The property will undergo a substantial rehabilitation that will total about $44,500 per unit.
A national real estate investment finance company, Red Stone has committed to close an additional $70.7 million in tax-exempt financing before the end of the year. The properties include a combination of 80/20 market-rate transactions, 4 percent LIHTC bond transactions, and preservation transactions with Sec. 8 HAP contracts. Financing terms range from five to 18 years.