Red Stone Closes $130,000,000 Financing to Preserve Low Income Housing in New York

NEW YORK--(Business Wire)--
Red Stone Partners announced today it closed a $74,000,000
tax-exempt financing and $35,000,000 direct equity placement used for
the preservation and rehabilitation of a low income multifamily
housing property in Brooklyn, New York. The property, Linden Plaza,
consists of five high rise buildings containing 1,527 apartment units.
Red Stone worked in conjunction with Wachovia Multifamily Capital and
Freddie Mac to provide The DeMatteis Organization with a new
tax-exempt debt structure specifically designed for the rehabilitation
and preservation of low income Mitchell-Lama, HUD Section 8 and 236
properties. Red Stone provided first loss mezzanine credit enhancement
for the debt facility and also arranged for the direct placement of
$35,000,000 in tax credit equity with a single investor. NYC Housing
Development Corporation issued the tax exempt multifamily housing
bonds.

The DeMatteis Organization plans to spend approximately $52
million towards the renovation of the property. In addition to common
area upgrades the tenants will also receive refurbished units with new
kitchens and baths. All the renovations will be completed with no
tenant displacement.

"This structure provides maximum loan proceeds and a single source
of funds for both construction and permanent financing," according to
Jim Gillespie, Managing Director of Red Stone.

Red Stone is now offering this financial product to owners and
developers of low income multifamily apartment properties throughout
New York City and other major metropolitan areas.

About Red Stone Partners

Red Stone is a national real estate finance company focused on
providing innovative financial products to the affordable housing
industry. Capitalized by an investment fund of Prudential Real Estate
Investors, Red Stone provides a full range of debt and equity capital
including: tax-exempt bond financing, tax credit equity investment,
HUD-approved FHA insured lending, mezzanine and participating debt,
and conventional equity.

For more information, visit our website at www.redstoneco.com or
call (212) 297-1800.

Red Stone Partners
Kiki Mastorakis, 212-297-1800

Copyright Business Wire 2008