San Pablo, California Benefits From Newman Capital's Affordable Housing Financing.

Business Editors

DENVER--(BUSINESS WIRE)--Aug. 16, 2001

Nationwide affordable housing lender, Newman Capital, recently funded $33,500,000 comprised of $26,220,000 tax exempt and $7,280,000 taxable multifamily housing revenue bonds to finance the acquisition and rehabilitation of Hilltop Commons Apartments.

The bonds were issued by the County of Contra Costa, California (the "Issuer") with Newman Financial Services, Inc., through its Structured Products Group, facilitating the transaction by entering into a 30-month Standby Bond Purchase Agreement, for the sub-bond debt, with Contra Costa County. Tax credit equity was provided through Paramount Financial Group.

Steadfast Hilltop Commons, L.P., a California limited partnership, is a single asset limited partnership that was created to own and develop/renovate the property. The property, known as Hilltop Commons, is located in San Pablo, Contra Costa County, California and consists of 324 units and related facilities.

The property, built in 1987, will remain occupied while undergoing moderate rehabilitation with expected completion by 2001. Of the 324 units, 52% are leased to tenants with incomes at or below 60% of area median income with the remaining 48% leased as market rate units.

Amenities include laundry facilities, two swimming pools and spas, a recreation building with a lounge, weight room and sauna. Additionally, a learning center will be established that will provide after school programs for children and educational classes for adults who reside at the complex.

The Borrower, Steadfast Properties and Development, Inc., ("SFP"), specializes in acquiring under performing properties and repositioning the assets, occasionally by curing noted deficiencies, but often through converting market rate properties to affordable housing. Newman & Associates has served as the underwriter on approximately 20 tax-exempt bond issues for SFP over the past three years.

Newman Capital underwrote the loan with a 30-month (2.5 years) interim term followed by a 30-year permanent term with 35-year amortization and a 1.15 to 1.00 debt service coverage ratio requirement. The interest rates for both tax-exempt and taxable loans were locked at 6.60% and 8.00%, respectively. Bond administration costs were added, resulting in a calculated blended rate of 7.00%.

Newman Capital, an affiliate of Newman & Associates, Inc. specializes in long-term, fixed rate, non-recourse financing of affordable multifamily properties nationwide. The Tax-Exempt Bond and Low-Income Housing Tax Credit programs offered are for to-be-built, newly constructed or rehabilitated apartments for families or elderly tenants.

Newman & Associates, Inc., a broker dealer member of the NASD, is a subsidiary of GMAC Commercial Holding Corporation.

Newman Capital Innsbrook Centre 4551 Cox Road, Suite 220 Glen Allen, Virginia 23060