Winter Park preps underwriting of Sitzmark Property
July 20, 2017
Members of the Winter Park Town Council unanimously voted Tuesday to partner with RBC Capital Markets to handle the underwriting services for the town's anticipated 2017 Certificate of Participation issuance for the Sitzmark Housing project.
RBC Capital Markets will act as a third-party source, creating bond packages for the Sitzmark Housing complex and marketing them to potential investors on behalf of the town of Winter Park. This will help the town raise the money they need to purchase back the Sitzmark apartments, according to Drew Nelson, town manager.
"The bond underwriter packages that project up and sells it to investors," Nelson said. "It's like owning a mortgage on a house. I say I own my house because I have the mortgage, but really the bank owns my house, and I'm paying the bank off for it."
The town of Winter Park earlier this year issued a request for proposal for the underwriting service, and received eight proposals. After a formal presentation by the top three candidates, town staff recommended RBC Capital Markets of California to handle the job.
“The bond underwriter packages that project up and sells it to investors. It’s like owning a mortgage on a house. I say I own my house because I have the mortgage, but really the bank owns my house, and I’m paying the bank off for it.”
— Drew NelsonTown manager
"We had a competitive RFP (request for proposal) process and we recommended RBC to the town council," said Nelson. "They have a strong portfolio doing this kind of municipal bond work across the nation. And we felt comfortable moving forward with them. We see them as potential partners in future projects as well."