Groundbreaking Occurs for 100 Units of Supportive Services Apartments in Columbus, OH

  • 03/30/2012

COLUMBUS, OH – Comprehensive capital provider RED CAPITAL GROUP, LLC (“RED”) recently structured a $7,500,000 tax-exempt bond financing for the construction of Franklin Station, a 100-unit apartment property in Columbus, Ohio which will serve elderly and special needs homeless persons. The sponsor of the project is the Columbus Metropolitan Housing Authority (“CMHA”).

The project enjoyed broad support at both the county and state levels, as it had a number of components including an allocation of 4% low income housing tax credits, and it also utilized Red Capital Markets, LLC’s (member finra/sipc) proprietary Bonds Directsm structure, whereby the bonds are issued on a staggered basis to align with construction needs of the project. As construction advances are made, coinciding increments of bonds are issued and then purchased directly by related entity Red Capital Partners, LLC, which uses its own capital to facilitate the multiple funding requests.

Joseph R. Hague, Red Capital Markets, LLC’s lead banker on the transaction said, “Bonds Direct is an efficient way for the project owner to both access 4% LIHTC’s through bond issuance and reduce transaction expenses including negative arbitrage expenses.  It is a creative solution that can mean the difference between getting a deal done or not.”

Financing for Franklin Station was finalized in February 2012, and a Groundbreaking Ceremony recently was held on March 16, 2012 in Columbus, Ohio. Other transaction participants included the Federal Home Loan Bank (grant provider); Ohio Capital Corporation for Housing (tax credit syndicator); Franklin County, Ohio (bond issuer) and Ohio Housing Finance Agency (tax credit allocation).

FranklinStation Franklin Station Groundbreaking Ceremony (Columbus, Ohio) March 16, 2012
(l to r): Andrew Howell, Executive Vice President & COO (Federal Home Loan Bank of Cincinnati); Dennis Guest (former Executive Director of CMHA); Charles Hillman, President/CEO (CMHA); Hal Keller, CEO (Ohio Capital Corporation for Housing); Robert J. Weiler, Sr. (The Robert Weiler Company); Stan Harris, CMHA Board Chairman; William T. Hinga, Senior Managing Director (Red Capital Markets, LLC); Joseph R. Hague, Vice President (Red Capital Markets, LLC).

Operating nationwide since its inception in 1990, RED CAPITAL GROUP, LLC is recognized for its industry expertise, innovative and comprehensive structures, and consistently high lender rankings. Red Mortgage Capital, LLC is one of the nation’s top three FHA lenders for overall Multifamily/LEAN experience, having closed more than 100 transactions totaling nearly $1.2 billion during HUD FY2011,  and also is an active Fannie Mae DUS® lender for both multifamily and seniors and an approved Freddie Mac Seller/Servicer for Seniors on a national platform.

RED CAPITAL GROUP, LLC is committed to being the nation’s premier provider of capital across the spectrum of multifamily, affordable and seniors housing and health care asset classes.

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About RED CAPITAL GROUP, LLC

RED CAPITAL GROUP, through three operating companies, provides integrated debt and equity capital to the multifamily, student and seniors housing, and health care industriesRed Mortgage Capital, LLC is: a leading Fannie Mae DUS® lender for both Multifamily and Seniors Housing; one of the nation’s most active FHA Multifamily/Seniors lenders (MAP- and LEAN-Approved); a national Freddie Mac Seniors Housing Seller/Servicer; an active financier of Critical Access, community and rural hospitals; and services nearly $15 billion of income property mortgage loans.  Red Capital Markets, LLC (member finra/sipc) is: a leader in the trading and distribution of Fannie Mae and Ginnie Mae Project MBS; an active underwriter of developer-driven multifamily housing bonds; and also is remarketing agent for $1.4 billion in variable rate demand tax-exempt and taxable housing and health care bonds.  Red Capital Partners, LLC delivers proprietary debt and equity to the multifamily and health care industries and provides asset management services for RED’s proprietary debt and equity investments.

RED CAPITAL GROUP is headquartered in Columbus, Ohio, employs approximately 200 people and maintains nine offices nationwide.  Since 1990, the bankers of RED CAPITAL GROUP have provided over $52 billion in taxable and tax-exempt first mortgage debt, mezzanine level capital and equity to multifamily, seniors housing, health care, and other real estate properties nationwide.  RED CAPITAL GROUP is a subsidiary of ORIX USA Corporation.

About Our Parent ORIX USA Corporation

ORIX USA Corporation (www.orix.com) is the U.S. subsidiary of ORIX Corporation, a publicly-owned Tokyo-based international financial services company established in 1964. ORIX Corporation is listed on the Tokyo (8591) and New York (NYSE:IX) stock exchanges. ORIX USA Corporation is a diversified corporate lender, finance company, and advisory service provider with more than $6 billion in assets and an extensive portfolio of credit products and advisory services. ORIX USA is headquartered in Dallas, Texas and has approximately 1,400 employees worldwide.

 

Red Mortgage Capital, LLC is a licensed FHA MAP and FHA LEAN lender.

DUS® is a registered trademark of Fannie Mae.

 

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For more information on this transaction, please contact: Red Capital Markets, LLC
Joseph R. Hague, Assistant Vice President
Columbus, OH
(614) 857-3176 jrhague@redcapitalgroup.com
For more information on RED CAPITAL GROUP, LLC please contact:
Linda L. Mackov, Senior Managing Director
Columbus, OH
(614) 857-1404 llmackov@redcapitalgroup.com