Municipal Capital Appreciation Partners

Multifamily Real Estate Investment That Utilized MCAP's Experience in Asset Repositioning and Financial Restructuring

MCAP invested $6.4 million in the 354-unit multifamily housing development, Venetian Bridges in Stockton, California.


  • Initiate rent increases and $500,000 of capital improvements
  • Sell property to not-for-profit owner, which would finance purchase with newly issued municipal bonds
  • Work with purchaser to credit enhance bonds or sell property to institutional purchaser or trade buyer of multifamily housing

Value-Added Actions

  • Hired new property manager and implemented capital improvements
  • Analyzed rental market, which led to implementation of significant rent increases
  • Increased revenues enabled MCAP to secure mezzanine financing, resulting in MCAP's receipt of more than its initial investment
  • Subsequently, municipal bonds were not pursued because rental restrictions on a tax-exempt bond financed property would have resulted in a lower deal return
  • Refinanced the property with a new Fannie Mae loan following the end of the lockout period of the assumed mortgage.


  • Efficient operations permitted MCAP to receive distributions from cash flow from the property
  • MCAP accepted an unsolicited offer to sell the property