LOS ANGELES, CA – Red Stone Tax-Exempt Funding recently closed the following tax-exempt bond transactions via its Red Stone Direct Bond Buy Program. An affiliate of Red Stone bought $18.785 million of tax-exempt bonds, the proceeds of which will provide mortgage capital for the acquisition, rehabilitation, and permanent financing of a 90-unit portfolio of three affordable senior citizen rental developments in the Los Angeles Metro.

The properties all benefit from Section 8 rental subsidies that were extended for 20 years to ensure the long-term affordability of the communities for the low-income senior tenants. The bond financing for these communities was done in three separate yet similar issuances allowing the flexibility for each transaction to close on its own timeline while minimizing transaction costs.

The properties, Pacific Rim Apartments, Rancho Del Valle and Maple Park Apartments, 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 Help Payment (“HAP”) Contracts, which provide rental help for the properties’ senior tenants.

The rehabilitation of the properties will be done by BlueGreen Preservation and Development, LLC. BlueGreen is a California based industry leader in developing and preserving affordable housing with extensive experience in a range of developments. They will partner with the community’s local non-profit to ensure that the specific needs of the elderly residents are addressed in the renovation.

“BlueGreen is grateful for the opportunity to preserve these existing affordable housing projects,” said Vivian Lum, Chief Executive Officer of BlueGreen. Ms. Lum continued, “we are thankful for the confidence placed in us by our lending partner, Red Stone, as well as by the non-profit owners and we look forward to continuing our relationship with Red Stone to further our mission of rehabilitating the existing stock of affordable housing nationwide.”

Brian Renzi, Managing Director of Red Stone, added, “Red Stone is proud to provide financing for the preservation of affordable communities for our older generations, such as these.” Mr. Renzi also added, “the capital work plotted by BlueGreen will preserve these communities for the long term and provide not only affordable housing, but high-quality affordable housing for the low-income senior tenants.”

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NEW YORK, NY – Mortgage rates were small changed again this week, with the benchmark 30-year fixed mortgage rate nosing higher to 4.05 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.22 discount and origination points.

The larger jumbo 30-year fixed increased to 4.07 percent, and the average 15-year fixed mortgage rate held steady at 3.27 percent. Adjustable mortgage rates were mixed, with the 3-year ARM inching lower to 3.61 percent, the 5-year ARM unchanged at 3.49 percent and the 7-year ARM ticking up to 3.67 percent.

The placidity of financial markets transformed into more of a subtle yo-yo action in the past week, with markets responding first to heightened tensions with North Korea, then to an easing of those tensions. Throw in a better tone of economic data, words from a Federal Reserve Bank President and the release of the latest Fed meeting minutes, and markets had more than the usual to digest. Bond yields initially fell as tensions with North Korea escalated, then increased as those immediate concerns faded, a Fed President hinted at a December rate hike, and better economic data revealed itself. Mortgage rates are closely related to yields on long-term government bonds. With the unpredictability in Washington, financial markets and mortgage rates could quickly find themselves at the whim of geopolitical worries, a forthcoming debt ceiling debate, or the expected initiation of the Federal Reserve’s balance sheet reduction.

At the current average 30-year fixed mortgage rate of 4.05 percent, the monthly payment for a $200,000 loan is $960.60.

SURVEY RESULTS

30-year fixed: 4.05% — up from 4.04% last week (avg. points: 0.22)
15-year fixed: 3.27% — unchanged from last week (avg. points: 0.21)
5/1 ARM: 3.49% — unchanged from last week (avg. points: 0.31)

Bankrate’s national weekly mortgage survey is conducted every Wednesday from data provided by the top 10 banks and thrifts in 10 top markets. For a full analysis of this week’s go in mortgage rates, go to www.bankrate.com

The survey is complemented by Bankrate’s weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. Half of the panelists expect mortgage rates to remain more or less unchanged, while 40 percent forecast an increase in rates. Just 10 percent predict a decline in mortgage rates over the next week.  

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CHICAGO, IL – Lowe Enterprises Investors (LEI), in joint venture with an institutional investor, has bought The Reserve Glenview, a 239-unit transit-oriented apartment community which opened in 2015, located in the premier North Shore submarket of suburban Chicago. Set on 7.59 acres at the intersection of Waukegan and Golf Roads, it is immediately adjacent to the Golf Transit Metra Station and a new retail center providing grocery, restaurants, shops and services.

“The Reserve Glenview is a well-designed, new community with a prominent location in North Shore, one of the best performing rental markets in suburban Chicago,” said Andy Sands, managing director, LEI. “It provides simple access to the area’s major employers and is steps away from public transit for commuting to downtown Chicago.”

Located at 195 Waukegan Road, the community is designed with three-tale buildings wrapping around a center parking structure. The community is an attractive option for professionals and families with a variety of floor plans and units ranging from studio and one bedroom up to spacious three bedrooms. All provide in-unit washer/dryer and designer interiors with modern fixtures and finishes.

Residents have abundant on-site amenities including a resort-style pool, outdoor kitchen/barbecue and picnic area, tranquil landscaped courtyard with fire pit, resident lounge and coffee bar, fitness center and executive business center.

“The Reserve Glenview is proximate to dozens of major companies headquartered between North Shore and Downtown Chicago, which are easily accessible with the adjacent Metra line. This property is a successful example of a high density urban project located in a premier suburban area with high barriers-to-entry,” says Sands.

The Reserve Glenview is a LEED Silver Certified property. Among its many green features are several energy and water efficiency systems.

LEI is an active investor in multifamily properties. In the greater Chicago area, the firm’s portfolio includes the 612-unit Bourbon Square in Palatine and the 210-unit Fairways of Naperville.

Greystar has been engaged to provide property management.

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