The Community Preservation Corporation, The Community Development Trust, Monadnock Development, Red Stone Equity Partners, BDN Triboro Acquire Portfolio with Properties in Manhattan, Bronx, Brooklyn
The sale will ensure the long-term preservation of high-quality affordable housing, with proceeds reinvested into new social justice fund
Ownership group includes , BDN Triboro, new Black-owned entity focusing on affordable housing and community development
NEW YORK (January 24, 2022) – The Community Preservation Corporation (CPC), The Community Development Trust (CDT), Monadnock Development (MonDev) Red Stone Equity Partners (Red Stone Equity) and the Black Developers Network Triboro (BDN Triboro) announced the closing of a transaction to purchase and preserve a 13-building affordable housing portfolio totaling 1,036 units. The 13 buildings are located on 10 properties that were developed by the Dunn Development Corp., and are located in Manhattan, the Bronx, and Brooklyn. All of the apartments will remain affordable to low-income tenants.
The new ownership team is made up of mission-driven nonprofit and for-profit companies with decades of experience in affordable housing finance, construction, maintenance, and management. The group of preservation-focused organizations is dedicated to providing stable, responsible ownership to preserve the long-term affordability and quality of the housing for residents that call these developments home. Ownership that is dedicated to affordable housing preservation can help guard against gentrification, reduce displacement, and contribute to the stability and revitalization of communities.
“CPC is proud to partner with a first-class group of companies that shares our mission to preserve the long-term affordability and quality of these properties for the tenants and their families. We believe that when you invest in a building, you’re investing in the future of the people who live there and in the stability of their community,” said Rafael E. Cestero, CEO, The Community Preservation Corporation. ”Dunn Development set a high bar for socially responsible affordable and supportive housing development, and we are proud to have the opportunity to continue to deliver that high standard to the tenants at these buildings.”
“CDT is proud to partner with mission-aligned companies to preserve these irreplaceable buildings as high-quality affordable housing – for the long-run,” said Joseph Reilly, President and CEO, The Community Development Trust. “It is critical to CDT that we share a long-term commitment to our residents with our partners – and we could not be more confident that CPC, Monadnock Development, Red Stone Equity, and BDN meet that standard. Together, we will ensure that current and future residents in these buildings continue to be served by quality, affordable housing and support and stewardship from the entire ownership team.”
The portfolio is comprised of newly built, high-quality affordable apartments constructed between 2011 and 2017, with all of the rents being income restricted, primarily at levels affordable to tenants earning at or below 60 percent of area median income. Many of the buildings also have supportive housing components, combining affordable housing with on-site support services to enable vulnerable populations to live independently and thrive. Two of the 10 properties were co-developed by Dunn Development Corp. and L+M Development Partners, Inc.
“Monadnock is proud to be a partner in this venture to continue the stewardship, investment and careful oversight of high-quality affordable housing created by Dunn Development. We have the utmost respect for Martin Dunn and intend to build on the legacy he leaves with these 10 properties,” said Nick Lembo, Chairman Monadnock Development.
“With the acquisition of the Dunn Portfolio, Red Stone Equity Partners and our employees saw a rare opportunity to achieve many important objectives. First, this transaction further deepens our commitment to preserving affordable housing in New York City. We have been working alongside Martin Dunn, Monadnock, CPC and CDT for many years in a variety of different capacities and this transaction provided another opportunity to partner with these high-quality companies and partners. Finally, RSEP has long been a champion of providing opportunities for BIPOC professionals to meaningfully participate in the affordable housing and community development industries. We’re excited that Kirk Goodrich and our partner, Richard Roberts, have meaningful ownership in this transaction and are playing a leadership role in this deal,” said Eric McClelland, Chairman and CEO of Red Stone Equity.
“Richard Roberts and I are friends and have been colleagues and collaborators for well over a decade. We are excited to joint venture in a way we haven’t before, with a team of outstanding companies. We want to thank Martin Dunn for his leadership and for supporting the participation of a black-owned firm in the ownership structure of these properties,” said Kirk Goodrich, President Monadnock Development, and Managing Member of BDN Triboro.
BDN Triboro, a 100% Black-owned entity and part of the new ownership group, is led by Kirk Goodrich and Richard Roberts, two recognized experts and innovators in the affordable housing industry. This transaction is an extension of an existing, decade long relationship, but represents their first venture outside their roles as executives at Monadnock and Red Stone Equity, respectively. It is BDN Triboro’s intention to pursue additional affordable housing and community development opportunities in the future.
“We’re so pleased to have found the perfect long-term stewards for this portfolio of affordable and supportive housing buildings we care so much about. Monadnock, CPC, CDT, Redstone and BDN Triboro are the dream team. And with the proceeds supporting social justice and human rights, this is a win many times over,” said Martin Dunn, founder and president, Dunn Development Corp.
In keeping with Dunn Development’s focus as a socially conscious, mission-forward company, a majority of the proceeds from the transaction will be used to capitalize a new charitable organization, the Blue Sky Social Justice Fund. The fund is being created to focus on supporting social justice and human rights efforts, including issues related to climate justice, LGTBQI+ rights, food justice, water and energy access, anti-slavery and Indigenous Peoples issues. Additional proceeds from the transaction are being used to provide financing to the Black Developers Network.
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About The Community Preservation Corporation (CPC)
CPC is a nonprofit multifamily finance company that was founded in 1974 to provide financial resources to stabilize and revitalize underserved communities. Today, CPC uses its unique expertise in housing finance and public policy to expand access to affordable housing and drive down the costs of housing production, advance diversity and equity within the development industry, and address the effects of climate change in our communities through the financing of sustainable housing. Since its founding, CPC has invested over $12 billion to finance the creation and preservation of more than 220,000 units of housing and has approximately 4,000 affordable units under ownership. CPC is a carbon neutral company and has been rated AA- by S&P. Visit CPC at communityp.com, and on Facebook, Twitter and LinkedIn
About The Community Development Trust
CDT is a national lender and investor in affordable communities and operates as a community development financial institution (CDFI) and private REIT. In its 23+ years, CDT has invested over $2.5 billion in debt and equity capital in properties in 45 states and regions — helping to preserve and create over 51,000 units of affordable housing.
About Monadnock Development
MonDev is a leader in developing new models of mixed-income and large-scale, mixed-use housing in New York from permanently affordable middle-income cooperatives, to the city’s first micro-unit development, to taking on the city’s toughest rehab projects. Over the past ten years, MonDev has developed over $2.9 billion in projects totaling over 8,000 units.
About Red Stone Equity Partners
Red Stone Equity is a leading real estate investment firm specializing in the syndication of Low-Income Housing Tax Credits and Renewable Energy Tax Credits to facilitate the development of affordable multifamily rental housing and renewable energy projects, respectively. Since its inception, Red Stone Equity has raised over $7.6 billion in tax credit equity. Red Stone Equity’s investments have facilitated the development and rehabilitation of over 50,000 affordable housing units in 45 states, Washington, D.C. and Puerto Rico. For more information, visit us at rsequity.com and on LinkedIn and Twitter.