NEW YORK, NY - Red Stone acquired $26.36 million of tax-exempt bonds, the proceeds of which will provide mortgage capital for the acquisition, rehabilitation, and permanent financing of a 455-unit portfolio of seven affordable multifamily and senior citizen rental developments across the state of Ohio.
The properties were acquired by affiliates of The Millennia Companies, a Cleveland, OH-based real estate company with entities that specialize in the acquisition, development, and management of affordable real estate developments. The Ohio Housing Finance Agency issued the $26.36 million of tax-exempt bonds and the Ohio Capital Corporation for Housing invested approximately $13 million in these properties via Low-Income Housing Tax Credit investment partnerships.
The properties are located in Cleveland, Vinton, Port Clinton, Bucyrus, Willoughby, and Fremont. The properties’ 455 total rental units include 193 which will continue to be reserved for in-need senior citizen rental tenants. All of the properties will benefit from modernization via significant rehabilitation budgets exceeding $35,000 per unit. The transaction will not only allow the recapitalizations of these properties, but will also ensure 20+ year renewals of their Section 8 Housing Assistance Payment (“HAP”) Contracts, which provide rental assistance for the properties’ multifamily and senior citizen tenants.
Red Stone’s Direct Bond Purchase Program allowed for the structuring of one master facility which was utilized to acquire all seven tax-exempt bonds issued by the Ohio Housing Finance Agency. Red Stone’s structure ensured the efficient closing of seven separate bond transactions with independent timelines, while still minimizing closing costs.
“Red Stone is proud to have provided financing for the preservation of these seven affordable communities,” said Brian Renzi, Vice President of Red Stone. Mr. Renzi added “Millennia’s collaboration with our firm, as well as the transaction’s other participants, allowed for the implementation of a staggered timeline structure whereby the closings of seven separate bond transactions, across six separate cities, was able to occur in an efficient manner.”
Frank T. Sinito, Chief Executive Officer of The Millennia Companies, commented “We are proud to have added these seven properties to our growing portfolio of affordable multifamily and senior citizen developments. Red Stone’s Direct Bond Purchase Program allowed us to structure a creative solution which simplified and streamlined an otherwise complex transaction. Consequently, thousands of multifamily and senior citizen renters across Ohio will have the opportunity to live in high-quality affordable communities."