Red Stone Tax-Exempt Funding Provides $85,270,000 in Tax-Exempt and Taxable Bond Financing for the New Construction of 621 Affordable Rent Units Across Three Communities

NEW YORK–(BUSINESS WIRE)–Red Stone Tax-Exempt Funding (“Red Stone”) successfully structured and
closed three tax-exempt and taxable bond transactions totaling $85.27MM
via its Red Stone Direct investment platform. These
investments will provide debt financing for the new construction of
affordable rental communities in California, Texas, and Utah. Cody Z.
Langeness, President of Red Stone, commented “We are proud of the effort
and cooperation which was necessary to ensure the efficient closing of
these transactions. Despite each property being located within a unique
geographic location, all three transactions closed within a four day
span. Most importantly, these high-quality developments will introduce
much-needed affordable rental units into their respective communities.”

In California…

April 9, 2019: Red Stone provided $24,270,000 for the new
construction of Cottages at Mission Trail, a 143-unit affordable
multifamily community in Lake Elsinore. The transaction was sponsored by
a joint venture between Civic Partners and AOF/Pacific
Affordable Housing Corp
. The development’s financing structure also
included LIHTC equity capital of approximately $13,560,000 which was
provided by Riverside Capital. The City of Lake Elsinore also provided
$5,721,250 of soft funds to support the transaction. The property will
provide a much-needed supply of affordable rental housing for residents
earning between 50% and 60% of the area’s median income. Rents will be
set at a level that will be approximately 40% lower than market rents of
nearby properties, providing for an affordable solution for the low
income residents of the area. Tax-Exempt and Taxable Bonds were issued
by the California Statewide Community Development Authority.

In Texas…

April 11, 2019: Red Stone provided $25,000,000 for the new
construction of Patriot Pointe Apartments, a 220-unit affordable
rental community in Fort Worth. The transaction was sponsored by a joint
venture between LDG Multifamily, LLC and Fort Worth Housing
Solutions
. The property’s financing structure included approximately
$13,300,000 of equity capital invested through the purchase of federal
LIHTCs allocated to the transaction by Enterprise Community Partners.
LDG and Fort Worth Housing Solutions both invested soft funds for this
transaction. Additionally, 22 of the apartments will be supported via a
HAP Contract via HUD’s RAD Program. The property will provide low income
residents in the Fort Worth metropolitan area with an affordable rental
option featuring modern in-unit amenities and on-site community
offerings such as an arts-and-crafts room, a fitness center, a swimming
pool and multiple social services for the residents. Tax-Exempt Bonds
were provided by an affiliate of Fort Worth Housing Solutions.

In Utah…

April 12, 2019: Red Stone provided $36,000,000 for the new
construction of Red Rock at Sienna Hills Apartments, a 258-unit
affordable multifamily rental community in the city of Washington. The
transaction was sponsored by Triago Ventures. The development’s
financing structure also included federal LIHTC equity capital totaling
approximately $14,640,000 provided by AEGON USA Realty. Red Rock at
Sienna Hills Apartments will be one of the first newly constructed
affordable communities in the greater St. George, UT area. The property
will introduce a much-needed supply of affordable rental housing for
residents earning between 50% and 60% of the area’s median income.
Tax-Exempt and Taxable Bonds were provided by the Utah Housing
Corporation.

Via the Red Stone Direct tax-exempt bond investment
platform, Red Stone was able to provide competitive financing facilities
for these transactions while minimizing costs and delivering on its
certainty-of-execution guarantee. Brian A. Renzi, Red Stone’s Managing
Director, added “Red Stone is proud to have provided tax-exempt and
taxable bond financing that will facilitate the creation of these
high-quality developments. All will be great additions to our growing
portfolio of bond investments supporting affordable rental communities
nationwide.”

About the Company:

Red Stone is a national real estate finance company which specializes in
tax-exempt and taxable bond financing. Red Stone Tax-Exempt Funding
LLC—through its Red Stone Direct platform—is a direct purchaser
of tax-exempt bonds used for the construction, preservation, and
refinancing of affordable multifamily properties nationwide. In addition
to Red Stone’s core tax-exempt bond business, the firm also offers
bridge lending, mezzanine financing, and other creative financial
products for the affordable housing industry.

For more information, please visit our website at www.redstoneco.com.

Contacts

Cody Z. Langeness
Brian A. Renzi
(212) 297-1800

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