Red Capital Group commits to rehabilitation of Stillwater complex

Various entities of RED CAPITAL GROUP, a comprehensive capital provider, provided a construction loan, LIHTC equity, a supplemental loan, and commitment for permanent financing to facilitate the substantial rehabilitation of an affordable, multifamily property in Stillwater, Oklahoma. 

Whispering Hills Apartments, originally build in 1972 under the HUD Section 236 loan program, is the beneficiary of an Interest Reduction Payments ("IRP") subsidy and a project-based Housing Assistance Payment ("HAP") rental subsidy.  Comprised of nine buildings on 4.6 acres, Whispering Hills Apartments is located approximately two miles south of the Stillwater Central Business District.

The new financing allowed for retirement of the Section 236 loan and the decoupling of the remaining IRP subsidy.  In addition, approximately $36,500 per unit in hard costs will be spent on the substantial rehabilitation of the property including the addition of new pitched roofs, replacement of all heating and air conditioning units, appliances, cabinets, electrical breakers, carpet, windows and doors, as well as paving and site drainage improvements.  Construction is expected to be completed in December 2007.  All of the units will be rent restricted and reserved for residents earning no more than 50% and 60% of Area Median Income.

Red Capital Markets, Inc. (member NASD/SIPC)) arranged for a $2,703,000 construction loan from Red Capital Community Development Company, LLC and also served as equity placement agent to syndicate $3,304,550 in low income housing tax credits.  A top ten Fannie Mae DUS® Forward Commitment for permanent financing, and Red Capital Advisors, LLC funded an IRP loan of $265,300. 

The project sponsor, Jim Rice, has extensive experience in the affordable housing sector and formed Arzon Development Company, LLC for the purpose of management, preservation and restoration of affordable housing.

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