MBA Commercial NewsLink Wednesday, January 31, 2007

Dealmaker of the Day

MBA (1/31/2007) Murray, Michael

Bulls Capital Partners LLC, Vienna, Va., a Fannie Mae Delegated Underwriting and Servicing (DUS) lender, issued a forward commitment for credit enhancement of tax-exempt bonds at $3.425 million on a to-be-built property in Atlanta.

Villages at Carver Phase V, a 165-unit planned apartment development, will be part of a master planned community designed to reflect the concepts of “new urbanism.” The property will include public housing units made available through HUD’s HOPE VI program, Low Income Housing Tax Credit (LIHTC) units, and market-rate units.

Financing was provided through the sale of tax- exempt bonds. Atlanta-based SunTrust Bank, as construction lender, will credit enhance the bonds during construction, and Fannie Mae will credit enhance the bonds when the property is built and stabilized. SunTrust also provided equity through the purchase of LIHTCs.

Credit enhancement for the tax-exempt bonds was originated by Derrick Brown of SunTrust, a direct correspondent for Bulls Capital Partners. Bulls Capital is a joint venture with SunTrust. Douglas Westfall, senior vice president of production, represented Bulls Capital Partners in the transaction.

The development of the project involves a joint venture between Integral Properties LLC, a subsidiary of The Integral Group LLC; Russell New Urban Development LLC, a subsidiary of H. J. Russell & Co.; and the Atlanta Housing Authority.

Plans for Villages at Carver include rental and homeownership units as well as a YMCA and the Atlanta Braves Baseball Academy to create a community where people can live, work and play.

“These transformational urban mixed-used developments are critical to the continued success of Atlanta’s in-town neighborhood revitalization,” said Vicki Lundy Wilbon, executive vice president of the development division-planned communities for The Integral Group LLC.

 “Phase V of the Villages at Carver represents the last multifamily rental phase of this successfully created mixed-use, mixed-income community in South Atlanta providing quality housing [rental and for sale],” said Renee Glover, CEO of Atlanta Housing Authority. “Partnering with a lender who understands the complexities of working with multiple capital sources in a public/private partnership was crucial to getting this transaction completed and funded on time.”