EquityPlus LLC today announced the successful sale of $16 million in bonds issued by the Richmond Redevelopment & Housing Authority. Proceeds from the bond sale will finance renovations to the Shockoe Hill Senior Apartments, a 100 percent affordable housing complex owned by Capital Realty Group, and the construction of a new community wellness center for its residents in Richmond, Virginia.
“We are delighted to support Richmond’s affordable housing efforts,” said Avram Fechter, Managing Director of EquityPlus LLC. “The success of this financing reflects the strength of the four-percent-floor bond market, resilience during these challenging times and, most importantly, a collective understanding of the urgent need to create and preserve affordable housing.”
The Richmond City Council approved the bonds on April 12, 2021. The bonds were purchased in their entirety by Cedar Rapids Bank & Trust of Iowa ($10.5 million) and Capital Realty Group ($5.5 million). EquityPlus identified the buyers, coordinated closing and will oversee compliance.
The low-income housing tax credit (LIHTC) bonds with the newly-created “4% Floor” passed by Congress in late 2020 were the first of their kind to be approved by the Richmond City Council.
“The four-percent-floor is a major victory for residents of affordable housing and thousands of families who remain in need of housing,” said Fechter. “Our goal is to assist developers and owners with finding funds that enable robust investments in affordable housing. There is great demand for housing, much of which is unmet.”
The city of Richmond and taxpayers will incur no expenses in the sale of the bonds. All funding will directly benefit Shockoe Hill Senior Apartments, a senior citizen low-income housing apartment complex subsidized by the federal Department of Housing and Urban Development (HUD).
EquityPlus, founded in 2011, provides investment banking and owner’s representation services to developers and banks seeking to invest in or develop projects serving low-income communities nationwide (LIHTC, HTC, NMTC, etc.). EquityPlus underwrites, closes and provides asset management services for investors; prepares applications for tax credits; locates investors and lenders; coordinates all closing parties, and; provides comprehensive compliance services. EquityPlus is jointly headquartered in Virginia and Mississippi.
Capital Realty Group, founded in 2004, restores, develops, preserves and manages affordable housing complexes nationwide. Capital Realty strives to create communities and believes that affordable housing should enhance the quality of life for residents. Capital Realty has invested tens of millions of dollars in improvements to its properties and is highly skilled in the art of “tenant in place” restoration. Capital Realty is headquartered in Spring Valley, New York.
