CT/KDF COMMUNITY DEVELOPMENT PARTNERS PROVIDES $36 MILLION IN FINANCING TO COMPLETE THE RAYMOND RENAISSANCE

PASADENA, CALIF. – CT/KDF Community Development Partners, LLC, of Newport Beach, Calif., announced that it has closed $36 million in new financing for the Raymond Renaissance project (www.theraymondcondos.com) in Pasadena, Calif. Located at 121-129 No. Raymond Ave. in the heart of Downtown Pasadena at the corner of Raymond and Holly Street, the project includes the historical restoration of the 1920s Jensen Raymond Theatre, the creation of 47 residential and commercial condominiums, and three ground-floor retail spaces along Holly Street.

The Raymond Renaissance is being developed by Gene and Marilyn Buchanan through their development company, AJB Enterprises, Inc. The Buchanans have been developing and renovating historical projects, primarily in the Pasadena area, since l979. The Raymond Renaissance represents the culmination of years of planning to renovate and restore the historical Jensen Raymond Theatre into a viable and productive mixed-use destination.

According to Robert M. Campbell, president of CT Realty Corp. of Newport Beach and one of the principals in the CT/KDF partnership, the Raymond Renaissance experienced construction delays and budget overruns during the construction period like so many other projects in the current environment. Despite being within weeks of delivering the units to interested buyers, there were insufficient funds available to obtain the final certificate of occupancy. CT/KDF, through its allocation of New Markets Tax Credit (NMTC) funds, was able to inject the necessary capital to see the project through the successful completion and delivery to the Pasadena market. CT/KDF worked in tandem with the original construction lender, East West Bank.

With the new infusion of capital, buyers have begun to move in. The financing will also enable payment to more than 40 contractors and vendors affiliated with the project.

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 in Southern California. The partnership has been using its allocation primarily in the form of below-market mezzanine debt to catalyst the development and redevelopment of commercial and for-sale housing projects. With the financing for the Raymond Renaissance, CT/KDF has now invested $54 million of its NMTC allocation.

“We’ve been able to use our NMTC funds as a mechanism for the workout of non-performing, overleveraged real estate projects which have hit maturity on the original construction loan,” Campbell said. “Using the New Markets Tax Credits, we can stabilize the projects and complete the necessary improvements for these properties, which will help to revitalize their neighborhoods.”

Sarah Woodward, long-time real estate veteran and CT/KDF partner said, “The Raymond Renaissance is truly a gem in Downtown Pasadena, and many condo buyers have been anxiously awaiting completion of the project so they can move into their homes. I’m proud to have the NMTC funds to use as a vehicle to see this project through to success.”

“One of the most exciting aspects of this portion of our allocation is the ability to redeploy proceeds from this investment into new transactions,” she added. “The loan proceeds from this investment will be repaid to us through unit closings. We will then be able to re-invest this $36 million into new transactions over the coming months, which will benefit additional neighborhoods in Southern California.”

CT/KDF’s focus is on ground-up or major rehabilitative office, retail, industrial and mixed-use projects throughout Southern California. The projects must be located in a qualified census tract under the U.S. Treasury Department’s NMTC program. For more information, go to www.woodwardrealtycapital.com or contact Sarah Woodward at 714/544-9930.

About CT Realty
Since its establishment in 1994, CT Realty Corp. (www.ctrealtycorp.com) has completed more than 140 transactions totaling more than $2 billion, which includes acquisitions, sales, development and redevelopment. In addition, the company provides development equity financing through strategic partnerships with developers primarily in Southern California. The focus of CT Realty’s investment activities is to acquire well-located assets with the potential to enhance their value through a solid, hands-on approach. Asset types are industrial, suburban office, multi-family, mixed-use, retail, and self-storage properties primarily in the purchase range of $5 million to $75 million.

About KDF Communities
KDF Communities (www.kdfcommunities.com) was founded as an affordable housing developer in 1996. Since that time, KDF has emerged as a leader in developing and rehabilitating affordable multi-family and senior housing. The company has also transferred its depth of development experience into commercial real estate.

Woodward Realty Capital, Inc.
Woodward Realty Capital Inc. (www.woodwardrealtycapital.com) is actively engaged in the acquisition, redevelopment and recapitalization of residential and commercial real estate assets throughout the Western United States. The company’s capital resources allow it to strategically and efficiently step into time-sensitive transactions on both single assets and major loan and/or REO portfolios.

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PHOTO CAPTION #1 (RAYMOND RENAISSANCE FAÇADE)

PASADENA, CALIF. – CT/KDF Community Development Partners, LLC, of Newport Beach, Calif., has closed $36 million in new financing for the Raymond Renaissance project in Pasadena, Calif. The project includes the historical restoration of the 1920’s Jensen Raymond Theatre, the creation of 47 residential and commercial condominiums, and three ground-floor retail spaces. With the new infusion of capital, the project is finishing construction and residents have begun moving in.

PHOTO CAPTION #2 (RAYMOND RENAISSANCE THEATRE INTERIOR)

PASADENA, CALIF. – The new Raymond Renaissance project in Downtown Pasadena, Calif., includes the historical restoration of the 1920’s Jensen Raymond Theatre.

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