Red Stone Partners announced that it has provided $71.1 million in tax-exempt bond financing for six affordable housing properties in Texas.
The properties were acquired by affiliates of Dalcor Cos., a Dallas-based real estate acquisition, development, and management firm. The developments are located in Houston, Dallas, Beaumont, Wichita Falls, Bryan, and Huntsville, and have 1,444 units.
The bonds were issued by the Texas State Affordable Housing Corp. Indianapolis-based City Real Estate Advisors will also invest approximately $33 million in these properties through its sponsorship of low-income housing tax credit (LIHTC) limited partnerships. Merchant Capital of Montgomery, Ala., also acted as an adviser and a placement agent for Dalcor.
“In the affordable housing industry we call this a ‘recycling’ transaction,” said James Spound, president of Red Stone, in a statement. “All six properties were constructed in the mid-1990s as communities that were capitalized through the sale of LIHTCs and, thereby, restricted to tenants earning not more than 60% of their respective area median incomes.”