ANAHEIM, CA – February 1, 2011 – (RealEstateRama) — Knightsbridge Realty Capital, Inc. of Newport Beach, Calif., has arranged financing of just under $3 million for the renovation of a retail center on North Anaheim Boulevard in Anaheim, Calif. The transaction includes a first trust deed loan supplemented with proceeds provided through the U.S. Treasury Department’s New Markets Tax Credit (NMTC) program, and accomplishes the goals of President Obama’s Healthy Food Financing Initiative announced in February 2010.
The senior loan component of $2.2 million was financed by a regional bank, with additional funding of approximately $0.7 million generated through CT/KDF Community Development Partners’ NMTC allocation. The New Markets Tax Credit program is targeted toward investment in new construction or substantial rehabilitation of properties in low-income areas. Compared to conventional, market-rate financing, in particular in distressed areas, the terms of the New Markets Tax Credit financing are very attractive and may be the only financing available for a worthy project in a low-income neighborhood.
CT/KDF received $90 million in late 2006 from the Community Development Financial Institutions Fund (CDFI) of the U.S. Treasury Department for investment in distressed areas in Southern California. This is CT/KDF’s second transaction closed through Knightsbridge for the borrower in recent months.
With headquarters in Aliso Viejo, Calif., CT/KDF’s focus is on ground-up or major rehabilitative office, retail, industrial and mixed-use projects throughout Southern California. The projects must be located in a qualified census tract under the U.S. Treasury Department’s NMTC program. For more information, please visit www.ctkdf.com or contact Sarah Woodward at 714/544-9930.
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