New York—Jonathan Rose Cos. announced it is purchasing Forest City Realty Trust’s Affordable Housing Business, valued at more than $500 million. The acquisition includes 48 affordable housing communities in seven states totaling 8,500 units, Forest City Capital, an MAP designated FHA Lender and Forest City’s affordable housing property management group.
The properties, management company and mortgage company will all be rebranded with the Rose Communities name. The management company will be renamed Rose Community Management, adding Rose’s focus on green buildings and communities of opportunity to Forest City’s reputation for quality management. The finance company will be renamed Rose Community Capital, with the plan to expand Forest City’s history of providing FHA loans to clients’ affordable and mixed income residential projects.
“Jonathan Rose Cos. 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 firms’ principals,” said Michael Daly, COO of Jonathan Rose Cos.
This deal brings Jonathan Rose Cos. total unit amount to more than 15,000 nationwide and expands its operations to 15 states and the District of Columbia. The properties range from the company’s traditional focus area of California to Connecticut, while adding in new states like Ohio and Michigan. The transactions are scheduled to close through first and second quarter 2017, while the management company and Forest City Capital are scheduled to be transferred this month. The acquisitions have been approved by Forest City’s board and the closings, which require HUD approvals, will continue through spring 2017. This expansion allows the company to add a Cleveland office, where it will retain Forest City’s property management team as well as its entire field staff for the portfolio.
Most of the buildings were developed in the late ’70s and early ’80s through the Forest City Dillon Program and consist of pre-fabricated concrete mid-rise structures that are in good condition. The company plans to take each property through the Enterprise Green Community Program, which includes capital improvements aimed at achieving measurable reductions of energy, water use and climate impact. Jonathan Rose Cos. will also be increasing social programming at each property to improve resident wellness.
“Jonathan Rose Cos. has long been a leader in the greening of affordable housing,” said Jonathan Rose, president & CEO of Jonathan Rose Cos. “We are now pleased to add to this the goal of systemically advancing the social, health and educational outcomes of our residents.”
Image courtesy of Jonathan Rose Cos.