Related capital inks $9M financing deal

Real Estate Weekly, May 25, 2005

Related Capital Company and CharterMac Mortgage Capital, subsidiaries of CharterMac, one of the nation's leading full service multifamily finance companies, announced this week that they have provided debt and equity financing for the $9.4 million development of Overlook at West Hill, a 64-unit affordable housing complex in Ithaca.

The transaction represents the first-ever use of the State Energy Research and Development Authority's new Energy Star Multifamily Pilot program, a program that seeks to significantly reduce energy use in new affordable housing developments through high-efficiency design and products.

The goal is to helping reduce energy demand in the state while protecting the environment, with new developments required to pass stringent evaluations under the program including computer-based energy analysis and extensive high-performance testing.

Related Capital invested $6.6 million in equity in exchange for tax credits received by the new development from the State Division of Housing and Community Renewal. CharterMac Mortgage Capital Company, the mortgage banking affiliate of Related Capital, provided an additional $1.9 in permanent financing.

Additional funds came from the Neighborhood Reinvestment Corporation.

The project will be developed by a team comprised of The Arker Companies, The Domain Companies, LLC, and Ithaca Neighborhood Housing Services.