Pembrook Capital Management, LLC arranged the completion of a $32 million tax-exempt financing transaction that facilitates Antheus Capital's redevelopment of a 600-unit apartment portfolio.
Known as the Commonwealth Portfolio, the 600-unit group of 11 historic prewar buildings located along Armour Blvd. has been acquired by an affiliate of Antheus Capital, LLC for $60.5 million. The properties are largely unoccupied.
Pembrook originated and participated in the purchase of a $32 million tax-exempt private activity bond, which was partially financed by a large financial institution. The bond was issued by the Industrial Development Authority of the City of Kansas City and is secured by a first mortgage on the portfolio. The proceeds of the bond issue will be used for ongoing renovations of the portfolio of properties.
In addition to the tax-exempt piece arranged by Pembrook, the Commonwealth Portfolio is financed through equity from the sponsor as well as a grant from the city, and a federal and state historic tax credit equity commitment by U.S. Bancorp Community Development Corp., a wholly owned subsidiary of U.S. Bank. In addition, the city is providing an 18-year tax abatement for the properties.