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The Lofts Apartments, Sacramento, CA

The Lofts is a 188 unit Class A apartment community in the Natomas area of Sacramento.  The property was constructed in 2004 and financed using a combination of taxable and tax exempt bonds.  The bonds received primary credit enhancement from Fannie Mae, with a guarantee during the construction period from Capmark Finance.  Following construction and lease-up, the property failed to support the full bond amount. The developer was unable to refinance the debt and sought to sell the property, while minimizing guarantee exposure. Reliant purchased the property from the developer and Capmark Finance through a complex modified short sale transaction, which relieved Capmark of its Fannie Mae obligations and the developer of its guarantees.  Reliant arranged floating rate bond financing with Fannie Mae’s long-term credit enhancement and purchased the subordinate bonds in the CAP fund.  The property also received an allocation of Low Income Housing Tax Credits and 20% of the units are required to be rented to tenants earning less than 50% of the Area Median Income.  

Rainbow Housing Assistance Corporation, the Co-General Partner, has initiated a robust resident services program enhancing the value of the community to its residents.