OMAHA, Neb., Oct. 22, 2012 (GLOBE NEWSWIRE) -- The Company acquired 100% of the $9.5 million tax-exempt mortgage revenue bonds issued by the North Carolina Housing Finance Agency as part of a plan of financing for the acquisition and rehabilitation of the Greens at Pine Glen property on October 18, 2012. The tax-exempt mortgage revenue bonds secured by the property were acquired by the Company at par and consist of two series that mature in October 2047. The Series A bond has a par value of $8.5 million and bears interest at an annual rate of 6.5%. The Series B bond has a par value of $950,000 and bears interest at an annual interest rate of 12.0%.
The Company had previously acquired a 99% interest in the Greens of Pine Glen property as part of its strategy of acquiring existing multifamily apartment properties that it expects will be partially financed with new tax-exempt mortgage bond at the time the properties become eligible for the issuance of additional low-income housing tax credits. In connection with the issuance of the new tax-exempt bonds, the limited partnership that owns the Greens of Pine Glen property admitted two new limited partner members which then purchased the low-income housing tax credits. The new limited partner members own 99% of the partnership that owns the Greens of Pine Glen property and are obligated to invest approximately $3.2 million of capital into the property. Once sufficient equity has been invested into the property by the new limited partners, which is expected to occur in the next twelve months, the Company will record the sale of the Greens of Pine Glen property. As part of the October 18, 2012 transaction closing, the $4.6 million mortgage on the Greens of Pine Glen property was paid off.
Chad Daffer, Fund Manager, stated, "The acquisition of the tax-exempt bonds secured by the Greens of Pine Glen property is another example that the Company's strategy of identifying quality multifamily properties represents a future opportunity for the Company to make tax-exempt bond investments in accordance with its investment strategy."