Preston Hollow Community Capital Completes $185 MillionFinancing for Residential Housing Development at Brooks
DALLAS, TEXAS – January 19, 2023 – Preston Hollow Community Capital (PHCC) recently announced the closing of a $185 million tax-exempt bond financing related to the development of a new build-to-rent residential community known as Los Cielos in partnership with the Brooks Development Authority, located in San Antonio. Los Cielos covers approximately 70 acres on the Brooks campus and will feature 492 for-rent, single-family homes, each with an attached two-car garage and a backyard. Neighborhood highlights include an amenity center, a working center, a pool, gathering areas, a dog park, and pickleball courts.
Preston Hollow Community Capital’s relationship with Brooks dates back to 2015 when PHCC purchased the Brooks Development Authority’s $54.9 million inaugural tax-exempt bond issuance. Since then, Preston Hollow has provided an additional $43.5 million in tax-exempt debt to the area and $74.6 million in committed Opportunity Zone equity. Preston Hollow’s aggregate investment in Brooks with the current bond issuance totals $358 million.
“Preston Hollow is pleased to grow our investment across the Brooks community and strengthen our partnership with the Brooks Development Authority,” said Ramiro Albarran, Co-Head of Originations at Preston Hollow Community Capital. “This financial solution aligns with our community development mission by providing newly constructed sustainable infrastructure and safe residential rental homes, amenities, and recreational facilities to residents working, living and playing at Brooks.”
“Preston Hollow Community Capital has been an integral partner in Brooks’ continual redevelopment and achieving our mission for transformative economic development and regional prosperity,” said Leo Gomez, President and CEO of the Brooks Development Authority. “This financing makes it possible for the redevelopment of the Los Cielos neighborhood at Brooks where nearly 500 families will call home.”
Provident Resources Group, a nonprofit organization and longtime partner of Preston Hollow, serves as the not-for-profit owner of equity interest in the Los Cielos development.
“Provident takes pride in our ongoing relationships with Preston Hollow and the Brooks Development Authority,” said Steve Hicks, Chairman and CEO of Provident Resources Group. “We believe the Los Cielos project and redevelopment of the Brooks community jumpstarts the surrounding community, helping to provide secure, affordable housing while furthering the economic development of greater San Antonio and promoting the well-being of the communities we serve, in line with our mission.”
Stifel, Nicolaus & Company, Inc. served as sole underwriter for the Bonds. von Briesen & Roper, s.c. acted as Issuer Counsel. Fishman Haygood, LLP and Phelps Dunbar, LLP acted as Borrower Counsel. Orrick, Herrington & Sutcliffe LLP acted as Bond Counsel and Authority Counsel. Nixon Peabody LLP acted as counsel to the underwriter.
Preston Hollow Community Capital is a market leader in providing specialized impact finance solutions for projects of significant social and economic importance to local communities in the United States. The Company invests in bespoke municipal finance transactions with a diversified investment portfolio. PHCC has invested $4.5 billion since its inception across various sectors of the municipal bond market, including real estate, K-12 and higher education, healthcare, infrastructure, hospitality, general government, and economic development.
Since its inception, Preston Hollow has raised $1.3 billion in committed, permanent equity capital from premier sponsors like Stone Point Capital and HarbourVest Partners. The Company has received long-term BBB (Stable) and short-term K2 (Stable) ratings from Kroll Bond Rating Agency.