America First Tax Exempt Investors L.P. Announces Recent Investment Activity

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OMAHA, Neb., Oct. 22, 2012 (GLOBE NEWSWIRE) -- The Company acquired 100% of the $9.5 million tax-exempt mortgage revenue bonds issued by the North Carolina Housing Finance Agency as part of a plan of financing for the acquisition and rehabilitation of the Greens at Pine Glen property on October 18, 2012. The tax-exempt mortgage revenue bonds secured by the property were acquired by the Company at par and consist of two series that mature in October 2047. The Series A bond has a par value of $8.5 million and bears interest at an annual rate of 6.5%. The Series B bond has a par value of $950,000 and bears interest at an annual interest rate of 12.0%.

The Company had previously acquired a 99% interest in the Greens of Pine Glen property as part of its strategy of acquiring existing multifamily apartment properties that it expects will be partially financed with new tax-exempt mortgage bond at the time the properties become eligible for the issuance of additional low-income housing tax credits. In connection with the issuance of the new tax-exempt bonds, the limited partnership that owns the Greens of Pine Glen property admitted two new limited partner members which then purchased the low-income housing tax credits. The new limited partner members own 99% of the partnership that owns the Greens of Pine Glen property and are obligated to invest approximately $3.2 million of capital into the property. Once sufficient equity has been invested into the property by the new limited partners, which is expected to occur in the next twelve months, the Company will record the sale of the Greens of Pine Glen property. As part of the October 18, 2012 transaction closing, the $4.6 million mortgage on the Greens of Pine Glen property was paid off.

Chad Daffer, Fund Manager, stated, "The acquisition of the tax-exempt bonds secured by the Greens of Pine Glen property is another example that the Company's strategy of identifying quality multifamily properties represents a future opportunity for the Company to make tax-exempt bond investments in accordance with its investment strategy."

Due to strong local real estate market conditions, the Company sold the Commons at Churchland property in August 2012 for approximately $8.1 million, net of closing fees. This resulted in a gain of approximately $1.3 million recognized in the third quarter of 2012. The $6.0 million mortgage on the property was paid off as part of the sale.

About America First Tax Exempt Investors, L.P.

America First Tax Exempt Investors, L.P. was formed for the primary purpose of acquiring, holding, selling and otherwise dealing with a portfolio of federally tax-exempt mortgage revenue bonds which have been issued to provide construction and/or permanent financing of multifamily residential apartments. The Company is pursuing a business strategy of acquiring additional tax-exempt mortgage revenue bonds on a leveraged basis in order to: (i) increase the amount of tax-exempt interest available for distribution to its investors; (ii) reduce risk through asset diversification and interest rate hedging; and (iii) achieve economies of scale. The Company seeks to achieve its investment growth strategy by investing in additional tax-exempt mortgage revenue bonds and related investments, taking advantage of attractive financing structures available in the tax-exempt securities market and entering into interest rate risk management instruments. America First Tax Exempt Investors, L.P. press releases are available on the World Wide Web at

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Safe Harbor Statement

Information contained in this press release contains "forward-looking statements," including statements related to the offering and the expected use of the net proceeds, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, risks involving current maturities of our financing arrangements and our ability to renew or refinance such maturities, fluctuations in short-term interest rates, collateral valuations, bond investment valuations and the overall negative economic and credit market conditions. For a further list and description of such risks, see the reports and other filings made by the Company with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2011. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT: Chad Daffer or Andy Grier 800/283-2357

Source:America First Tax Exempt Investors, L.P.