2008-06-02 23:34:24 -

- Red Stone Partners announced today that it recently closed on the direct purchase of $14,128,000 of 5.85% fixed rate tax-exempt bonds. The proceeds from the bonds will be used to acquire and renovate two properties located in Cincinnati, Ohio containing a total of 269 multifamily rental units. The properties benefit from long term project based Section 8 HAP contracts.

Equity was raised through the sale of 4% low income housing tax credits.

Transaction Highlights:

-- Competitive fixed rate execution

-- Combined acquisition/rehabilitation and permanent financing

-- Interest only for the initial 36 months of the 16 year facility

-- 20 year project based Section 8 HAP contracts

-- Experienced sponsorship

Red Stone provided the borrower with a single source of bond financing to fund the acquisition and renovation of the property as well as non-recourse permanent financing at a very competitive fixed rate.

Red Stone is a privately held national real estate finance company that specializes in tax-exempt bond financed multifamily housing. Red Stone provides a full range of debt and equity capital including: tax-exempt bond financing (direct bond purchase and long-term non-recourse credit enhancement), tax credit equity investment, HUD-approved FHA insured lending, mezzanine and participating debt, and conventional equity. Red Stone offers developers flexible, efficient structures and certainty of execution.

For more information, please visit our website at www.redstoneco.com.

Red Stone Partners
Jim Gillespie, 212-297-1800