CT REALTY ANNOUNCES CT/KDF COMMUNITY DEVELOPMENT “LIVING FIT” PROJECT IN TENNESSEE

ALISO VIEJO, CA – October 25, 2011 – (RealEstateRama) — Aliso Viejo, Calif.-based CT/KDF Community Development Partners, a joint venture between CT Realty Investors and KDF Communities, has provided $9.4 million in New Markets Tax Credit (NMTC) financing to develop a new $28.35 million wellness center in Jackson, Tenn. The financing was provided in concert with Wells Fargo Bank, which led a consortium of community development entities including CT/KDF in financing the project.

Financing for the center, known as “Living Fit in Tennessee,” will be used to build a 99,117-square-foot facility serving the healthcare, retail and other needs of the community. Living Fit will feature a 75,000-square-foot community center leased to West Tennessee Healthcare, a Tennessee not-for-profit entity, and offer fitness and wellness programs, swimming pool, primary care clinic, a physical therapy rehab center and an aqua therapy program. The remaining space will be used for retail to support additional needs of the community. Developed by Crocker Construction Co. in Jackson and the Henry Turley Co. of Memphis, Tenn., the Living Fit project is expected to create more than 80 permanent jobs and 320 construction jobs.

The wellness center is a major component of a 17-acre redevelopment called CityWalk in downtown Jackson. The large-scale project is designed to revitalize the downtown area and stimulate the new development of an attractive, thriving community. CityWalk will include a retail center, 144 units of multi-family housing, 50 lots for single-family housing, improvements to the public infrastructure, and parking. The project is located adjacent to a Farmer’s Market and is expected to create pedestrian links from neighborhoods in the surrounding area to the downtown. CityWalk will also be in close proximity to Lane College and Lambuth University, and is expected to spur investment to refurbish and create single-family homes in the Lambuth neighborhood.

CT/KDF’s financing for the Living Fit project was generated through the company’s NMTC allocation from the federal government. 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.

“The federal New Markets Tax Credit program is targeted toward investment in new construction or substantial rehabilitation of properties in low-income areas,” said Sarah Woodward, chief investment partner for CT/KDF. “Compared to conventional, market-rate financing – especially financing for distressed areas – NMTC money is very attractive and may be the only financing available for a worthy project in a lower-income neighborhood. We are excited to be involved in the Living Fit project which will bring important health services, new retail and much-needed job opportunities to this community.”

Living Fit is CT/KDF’s fifth transaction using its NMTC allocation. Woodward notes that three additional financings totaling nearly $35 million are currently in process, with closings set to occur over the next 45 days.

Upcoming financing opportunities for the CT/KDF team will come from approximately $37 million of investment power stemming from funds that have been returned to the company that are now available for reinvestment in worthy Southern California projects. Woodward said, “We are especially fortunate to have this unique pot of NMTC financing which is rare in the market, as these funds only need to remain invested for three to four years, rather than the typical seven-year NMTC horizon. We are particularly interested in finding ground-up or major project rehabilitation opportunities for this money, as this shorter investment timeframe fits well with asset turnaround situations.”

For more information, please visit www.ctkdf.com or contact Sarah Woodward at 714/544-9930.

Since its establishment in 1994, CT Realty Investors has completed more than 200 transactions with value in excess of $2.5 billion through a series of 10 independent discretionary private equity real estate funds, and continues to invest in institutional quality industrial properties, debt instruments, multi-family properties and other income-producing assets. The focus of CT Realty’s investment activities is to acquire well-located assets in major markets with the potential to enhance their value through a solid, hands-on management approach. For further information, contact Carter Ewing at CT Realty Investors at 949/330-5777 or visit www.ctrinvestors.com.

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RENDERING

ALISO VIEJO, CALIF. – CT/KDF Community Development Partners, a joint venture between CT Realty Investors of Aliso Viejo, Calif., and KDF Communities of Newport Beach, Calif., has provided $9.4 million in New Markets Tax Credit financing to develop the “Living Fit in Tennessee” wellness center in Jackson, Tenn. Living Fit will be a 99,117-square-foot facility serving the healthcare, retail and other needs of the downtown Jackson community.

Contact:

Donna Hahn
Hahn Communications
(949) 458-3983
donna (at) hahnmarketing (dot) com