El Paso RAD transaction transforming 1,590 models at 13 sites shuts
On April 9, 2015, the Housing Authority from the Town of El Paso (HACEP) and it is development, private equity finance and lending partners closed Phase I from the biggest Rental Assistance Demonstration (RAD) project in the united states. Search Development Group has became a member of HACEP in undertaking the expansion, upkeep and treatment of all the 1,590 existing low-earnings housing models across 13 separate public housing apartment complexes in El Paso, Texas regarding the the conversion of individuals models to Section 8 RAD models.
The work utilized several types of financing, including private equity finance, tax-exempt financial loans and bonds and subordinate financial loans. Freddie Mac and Centerline Mortgage Partners, Corporation., a wholly possessed subsidiary of Search Mortgage Group, LLC, provided $59,625,000 in lengthy-term, senior debt financing through Freddie Mac’s new Direct Acquisition of Tax-Exempt Financial loans program. The conduit loan provider with this tax-exempt loan, the Alamito Public Venues Corporation, also released $65,375,000 in tax-exempt, short-term bonds, for the work.
Ballard Spahr was honored to take part in this historic transaction, closing the nation’s biggest RAD conversion up to now, making certain that more than 1500 families may have affordable and sustainable housing on a lengthy-term basis. The financial lending and structuring factors and issues addressed within this transaction give a strong grounds for future deals of comparable and growing complexity.