Va Series 2017 Revenue Bonds Acquisition Renovation amp Equipping of an Affordable Housing Apartment Project American Tobacco Holdings LLC 2 Project Overview Affordable Housing Project in Richmond Virginia ID: 1046127
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1. $13,850,000*Richmond Redevelopment and Housing Authority (Va) Series 2017 Revenue BondsAcquisition, Renovation & Equipping of an Affordable Housing Apartment ProjectAmerican Tobacco Holdings, LLC
2. 2Project OverviewAffordable Housing Project in Richmond, Virginia Substantial Rehab of Historic Tobacco Plant/Warehouse Facilities Property placed on National Register of Historic Places (August 2016)4 Story Building(s) with 134 Total Units:131 One and Two Bedroom Units3 Three Bedroom Units142d transaction - 4% LIHTC QualificationsFederal, Historic, State Tax Credit Equity Tax-exempt bonds sized @ 50% of project hard costsFunding Sources: Tax Credit “Equity” 55% Bond Proceeds 45%Borrower: American Tobacco Holdings, LLC
3. 3Project PhasesProject CostsPhase 1Phase IITotalsAcquisition$2,340,000 $1,700,000 $4,040,000 Hard Costs16,743,20812,897,50029,640,708Soft Costs5,128,7846,044,16011,172,944Reserves1,208,335600,0001,808,335Fees3,226,0002,124,0005,350,000Total Investment$28,646,327 $23,365,660 $52,011,987 Phase I: 134 units under constructionPhase II: 159 units in predevelopment
4. 4Summary of Tax Credit Equity – Phase ITypes of Equity AmountFederal Low Income Housing Tax Credits (LIHTC) $ 8,467,416 Federal Energy Tax Credits (Energy) 312,117 Federal Historic Tax Credits (FHTC) 4,107,929 State Historic Tax Credits (SHTC) 4,129,197 Total $ 17,016,659 Credit TypeStage 1 (Bond Settlement)Stage 2* (Construction Completion)Stage 3* (At Targeted Occupancy)TotalsLIHTC $ 1,693,483 $ 4,657,079 $ 2,116,854 $ 8,467,416 Fed Energy TC 62,423 171,664 78,030 312,117 FHTC 821,586 2,259,361 1,026,982 4,107,929 SHTC ** 2,500 - 4,126,697 4,129,197 Total $ 2,579,992 $ 7,088,104 $ 7,348,563 $ 17,016,659 Equity TypesEquity Contribution Schedule
5. 5Financing Summary - Sources and Uses (Bond Closing)Phase I Sources and UsesSources of FundsPar Amount $ 13,850,000 Tax Credit Equity 3,171,321 Bridge Loan (Tax Credit Equity) 9,000,000 Total Sources $ 26,021,321 Uses of FundsProject Fund $ 16,743,208 Acquisition Costs 2,340,000 Capitalized Interest 1,057,088 Lease-up Reserve 250,000 Debt Service Reserve Fund (Max Annual DS) 660,856 Financing Fees for Tax Credits, Interim Loan, etc. 2,066,748 Reimbursable Costs 1,100,143 Professional Fees 1,362,800 Costs of Issuance 440,478 Total Uses $ 26,021,321
6. 6Financing Summary (cont)Maturity DatePrincipal AmountInterest RatePriceCUSIP July 1, 2020**$3,790,000 3.13%100%765411 AA1 January 1, 2037$10,060,000 5.55%100%765411 AB9Summary Bond Metrics Blended Yield4.88% 10-Year UST 7-27-172.33% WAM13.8 Years DSCR1.25x Loan to Cost48% Amortization Basis 2037 Maturity40 Years Balloon at Year 20$8,135,000 (30% of Cost)$13,850,000* Series 2017 Revenue Bonds*The source of repayment of Term Bonds maturing July 1, 2020 will be Tax Credit Equity (as defined herein), plus any available revenue from Project Operations
7. 7Transaction Positive AttributesDevelopment Team ExperienceMarket segment familiarityCAHEC Involvement – additional due diligence, annual monitoringWell leveraged - Bonds vs EquityStaged construction, reduced construction riskFinal product quality “atypical” for affordable projectJefferson Davis Corridor focal point of the City of Richmond
8. 8Project Overview (continued)The American Tobacco Plant consists of a prior manufacturing structure with a power plant building that was used to provide steam and power to the facility as well as tobacco storage. The property has been bifurcated into the 2017 affordable housing project and a future project that will incorporate the tobacco storage sheds.Rear portion of northernmost building showing windows
9. 9Project ProgressAmerican Tobacco Siteas of June, 2017
10. 10Project ProgressCutting Concrete
11. 11Project ProgressFraming Underway
12. 12Project ProgressFraming Atrium
13. 13Project ProgressRefurbishing Historic Windows
14. 14Project PhasesConverting Drying Sheds