ARCADIA, CA - Red Capital Markets, LLC and Red Mortgage Capital, LLC, respectively the investment banking and mortgage lending entities of comprehensive capital provider RED CAPITAL GROUP, LLC, recently provided a combination of bond underwriting and mortgage banking services related to the acquisition and rehabilitation of a low income, seniors housing property in Arcadia, California.
The transaction utilized a $10,125,000 conventional/taxable FHA Section 223(f) loan processed pursuant to FHA’s Low Income Housing Pilot Program and funded by Red Mortgage Capital, LLC. Proceeds of the FHA loan will serve as collateral for $10,125,000 of short-term, tax-exempt multifamily housing revenue bonds issued by California Statewide Communities Development Authority and underwritten by Red Capital Markets, LLC.
Naomi Gardens is a 101-unit, Section 8 subsidized elevator building in Arcadia, Los Angeles County, CA, and was originally constructed with a HUD 202 direct loan in 1985. The property is currently restricted to serving over age 62 seniors and the disabled, whose adjusted income is no more than 50% of the area median income. The recapitalization will allow the preservation of existing affordable seniors and disabled resident rental units for 55 years.
ReBuild America, Inc, whose principals have been actively involved in the development, construction, rent-up, and management of over 70 affordable rental housing and supportive housing facilities for the elderly and physically handicapped, serves as General Partner. ManSerMar, Inc, provides management for this property as well as 58 other seniors housing facilities across the US.
Developer Cissy Watson of Psalms 127, LLC, said, “It was a true pleasure to work with such a top notch financing and development team on the preservation of Naomi Gardens. With the collective experience of the team, along with their professional work ethic, this intricate and complex transaction came together like a well-oiled machine,” Watson continued, “Every team member played an integral part. Thanks for leading us, Rick Andrews and RED!”
Rick Andrews, Red Mortgage Capital, LLC, and provider of the FHA-insured loan said, “Working with Rebuild America, ManSerMar and Cissy Watson through the prepayment process of the existing Section 202 direct loan and the new Section 223(f) Pilot preservation loan was a real pleasure.” Andrews went on to say, “Their extensive experience with the Los Angeles HUD office and the Section 202 direct loan program made a complicated preservation process an easier task for all involved.”
Nick Hamilton, Red Capital Markets, LLC, who acted as underwriter of the bonds added, “Such transactions are never straightforward, but the expertise and dedication of the development and financing team helped simplify a complicated process.” In closing, Hamilton said, “Recapitalization of the project with FHA debt and LIHTC equity will ensure that current and future residents enjoy safe, decent and affordable housing for many years to come.”