Jonathan Rose Lands Forest City’s Affordable Housing Arm
- Mar 03, 2017
New York—Jonathan Rose Cos. recently purchased Forest City Realty Trust’s affordable housing business, consisting of 48 communities in seven states, totaling roughly 8,500 units. The acquisition includes Forest City Capital, an MAP designated FHA lender and Forest City’s affordable housing property management group. The transaction is valued at more than $500 million and it is scheduled to close throughout the first and second quarter of 2017.
The management company will be renamed Rose Community Management. The finance company will become Rose Community Capital, with the goal of expanding Forest City Capital’s 47-year history of providing FHA loans to clients’ affordable and mixed income residential projects in the Midwest and the Northeast. The properties range from California to Connecticut, Ohio and Michigan, but Rose plans on expanding its geographic footprint and volume.
The acquisitions have been approved by Forest City’s board. The closings, which require HUD approvals, will continue through the spring of 2017. To this major expansion, Jonathan Rose Cos. is adding a Cleveland office, where it has retained 45 workers from Forest City’s Cleveland headquarters.
“Jonathan Rose Companies was selected to purchase this portfolio because of its long reputation of preserving, renovating and re-positioning affordable housing, and Forest City Realty Trust’s ongoing relationship with the firm’s principals,” said Michael Daly, COO of Jonathan Rose Cos., in a prepared statement.
Most of the acquired buildings were built in the late 70’s and early 80’s, as part of the Forest City Dillon program, and consist of pre-fabricated concrete mid-rise structures. Jonathan Rose Cos. plans to take each of the properties through the Enterprise Green Community Program. According to therealdeal.com, Rose intends to invest $1 million to $15 million worth of repairs at each property.
With this addition, Jonathan Rose Cos.’ total unit count rose to more than 15,000 nationwide and expanded its operations to 15 states and the District of Columbia.
Image courtesy of Jonathan Rose Cos.