Source: Capmark Financial Group / #Multifamily #LIHTC
HORSHAM, PA - Capmark Financial Group Inc. announced that it closed on the sale of its low-income housing tax credit (“LIHTC”) asset portfolio to the Hunt Companies, Inc., a leading national real estate services company headquartered in El Paso, Texas (“Hunt”). Hunt was the successful bidder in the Company’s bankruptcy auction of these assets for a total price of $102.4 million. Under the terms of the purchase agreement the transaction will be closed in stages, with $63 million of the total included in the initial closing completed Friday, October 7. It is anticipated that subsequent purchases would be completed for the remainder of the portfolio, subject to receipt of certain required third party consents and satisfaction of other conditions. A break-up fee of approximately $2.8 million was paid to the stalking horse bidder in the auction.
Thomas L. Fairfield, Chief Operating Officer of the Company, said, “We are pleased to complete this transaction, which is consistent with our strategy of disposing of our LIHTC operations over time. We believe that Hunt will be a good long term partner for the investors and other counterparties with interests in the LIHTC funds involved in the transaction.”
Capmark is a real estate finance company focused on the management of its commercial real estate-related assets and businesses with a view to maximizing their value. Capmark is headquartered in Horsham, Pennsylvania and operates principally in North America.
Hunt and its affiliates have $10 billion of Assets Under Management. Of these, $4.4 billion are directly owned by Hunt Companies, Inc. Assets include 65,000 multi-family housing units, 5.8 million square feet of commercial real estate, 1.5 million square feet of industrial real estate and 3 million square feet of retail real estate. Hunt’s expertise is also comprised of 88,000 housing units built, thousands of acres of land developed and over 400 projects completed in 32 states. Project development costs have been in excess of $6.3 billion, with over $7.9 billion in construction costs. Hunt’s 2010 gross revenue was over $900 million.