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Multi-unit housing for US Veterans, backed by guaranteed federal funds (Virginia)

  • Posts: 1
    Posted on 04/29/2012
    5SGC

    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.   

    VA has awarded the private sector the opportunity to build its  “living laboratory” prototype that puts into practice VA’s optimal healthcare environment design and specifications as recommended in its   “Innovative 21st Century Building Environments for VA Healthcare Delivery”  report.

    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:


    1.  $6.8 million in a guaranteed award from the U.S. Department of Veterans Affairs.

    2.  $3.4 million pre-development/construction loan offered by PNC Bank,

    3. Tenant rent guaranteed through the U.S. Department of Housing and Urban Development.

    4. Land provided by U.S. Department of Veterans Affairs via a 75-year, $0 rent, Enhanced Use Lease on a VA Medical Center campus.

    5. Construction completion guaranteed by Berkshire-Hathaway for its Clayton Homes subsidiary.

    6. 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 (dpl@5sgc.net), 917- 523 2004, for more information.

    Thank you,

     

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