Multi-unit housing for US Veterans, backed by guaranteed federal funds (Virginia)
Posted on 04/29/2012
5 Stone Green Capital LLC seeks an insurer to underwrite a policy on a multi-unit green housing project and jobs program solely dedicated to returning, homeless and disabled U.S. veterans. The majority of the project’s financing ($6.8 million) is in place and guaranteed by the U.S. Department of Veterans Affairs (“VA”). Rents are also guaranteed by the U.S. Government. An institutional lender is willing to provide a $3.4 million pre-development/construction bridge loan.
5 Stone Green Capital LLC desires insurance and/or surety options or products that will provide credit enhancement for the bank’s $3.4 million bridge loan. We anticipate the policy would take the shape of a “guaranty of payment” or “guaranty of collection” for the $3.4 million loan.
The development provides an optimal health care environment by delivering permanent, energy efficient green housing and an adjacent working hydroponic farm that will create 10-14 jobs exclusively for U.S. veterans.
Details of the project are as follows:
$6.8 million in a guaranteed award from the U.S. Department of Veterans Affairs.
$3.4 million pre-development/construction loan offered by PNC Bank,
Tenant rent guaranteed through the U.S. Department of Housing and Urban Development.
Land provided by U.S. Department of Veterans Affairs via a 75-year, $0 rent, Enhanced Use Lease on a VA Medical Center campus.
Construction completion guaranteed by Berkshire-Hathaway for its Clayton Homes subsidiary.
Additional net income (above that generated by the tenant rental operations) is generated by a professionally managed enclosed all weather hydroponic farm. The farm is adjacent to the housing and is on VA Medical Center land.
We anticipate a policy term of 25 months and are prepared to pay the premium, in a lump-sum, upon closing of the pre-development loan.
Please contact Doug Lawrence, Managing Principal of 5 Stone Green Capital (firstname.lastname@example.org), 917- 523 2004, for more information.