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FOR IMMEDIATE RELEASE
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Stateside Capital, LLC
Announces Completion of Private Placement of
Stateside
Georgia Tax Credit Fund I, LLC,
Helping Create Approximately 1000 New Affordable Housing Units in 2005
Company also announces completion of three Metro Atlanta properties
Atlanta, GA – January 10, 2006 – Stateside Capital, LLC today announced the completion of the private placement of Stateside Georgia Tax Credit Fund I, LLC, which generated over $25 million in Georgia Housing Tax Credits. Stateside Capital is the first and only Georgia company organized to facilitate investments in state tax credits.
The equity provided by the Stateside fund was instrumental in creating approximately 1000 new affordable housing units for the elderly and families with limited incomes in Georgia. “In one short year the fund has helped create approximately 1000 new high quality, affordable apartments,” explains Richard L. Beacham, Stateside Capital’s president. “It’s a win-win proposition for both the investor, who benefits from a long-term state income tax reduction by owning state housing tax credits, and the potential occupant, who has access to a quality affordable apartment that would otherwise not be available.”
Atlanta Properties Completed
The company also announced the completion of the final three properties to which Stateside Georgia Tax Credit Fund I, LLC contributed equity: Brookside Park, Columbia Heritage Apartments and Woodlawn Park Apartments. All three properties are located in Metropolitan Atlanta, GA. Stateside earlier this year announced the completion of apartment properties in Gainesville, GA and Augusta, GA. Of the final three properties, two are located in the City of Atlanta and the third is located in McDonough in Henry County. All three are now leasing apartments.
Brookside Park is an apartment complex located in the south central area of Atlanta. It is a nine-building complex targeting families. The property consists of 200 apartments on 14.36 acres. The complex features such amenities as washer and dryer hook-ups in each apartment, a community room, pool, patios, one-car attached garages, and a playground and picnic area. On an annual basis, the property is expected to generate approximately $471,000 of Georgia Housing Tax Credits.
Columbia Heritage Apartments, located in the northwest area of Atlanta, is a 130-unit apartment building targeting the elderly. The single-building unit sits on 3.49 acres and features such amenities as washer and dryer hook-ups for each apartment, a community room, beauty salon, central laundry room, security system, picnic area, walking paths, and a gazebo. All units are two bedroom/one and a half bath models. Columbia Heritage is expected to generate approximately $719,000 of Georgia Housing Tax Credits on an annual basis.
The third property, Woodlawn Park Apartments, is located southeast of downtown McDonough and consists of a 240-unit apartment community targeting families. The complex features 11 three-story buildings on 17.43 acres and has a clubhouse equipped with a kitchen, fitness center and business center, a swimming pool, picnic area, playground, central laundry and lighted tennis courts. On an annual basis, Woodlawn Park is expected to generate approximately $361,000 of Georgia Housing Tax Credits.
When added to the more than 400 units provided by the Augusta and Gainesville properties, Stateside’s investments have provided a total of approximately 1,000 new affordable housing units in Georgia in 2005.
Through the 1986 Tax Act, the Federal Government created an incentive program for developers to build privately-owned apartments in locations where market rate rents have exceeded the level many individuals could afford.
Georgia’s tax code was amended in 2001 to allow the separation of state housing tax credits from the Federal tax credits to help investors in affordable housing developments to reduce state income taxes and insurance premium taxes. These credits encourage businesses and high net worth investors to provide a public benefit in the form of affordable housing by enabling them to reduce their state tax liabilities. State housing tax credits are generated through leading real estate developers who specialize in family and senior housing properties. Sixteen other states offer similar state tax credits.
“These properties provide quality apartments people will be proud to live in,” said William J. Michalak, Stateside’s chief operating officer. “This will become especially important in the future as the first wave of ‘Baby Boomers’ begins to retire and seek housing they can afford on reduced incomes.”