News


In NYC: Building Affordable, Workforce Housing

By richmangroup,

In the Big Apple, finding an affordable home that’s near public transit can feel like finding a needle in a haystack.

So it’s good news that a new 550-unit apartment building is being built in Queens right by a huge transit station to house mixed-income residents, many of whom have low to moderate incomes.

The Crossing at Jamaica Station is workforce housing that will replace a run-down property to serve the needs of the community.  It’s happening because of an innovative partnership with the lender RICHMAC Funding LLC, New York City Housing Development Corporation (HDC), and Freddie Mac. The Borrower entered into a Brownfield Cleanup Program grant to help transform the blighted site.

Freddie Mac provided $158 million in an unfunded forward commitment for a bond credit enhancement.

The deal structure really helped the Borrower save money by using privately placed, floating rate bonds which do not require an expensive liquidity facility. This worked because an institutional investor, the Federal Home Loan Bank of New York, purchased the bonds issued by HDC.

“Freddie, as we’ve come to expect, your partnership in getting this done was incredible,” said RICHMAC Funding President Matthew Wambua, commenting on the team and the “extremely complex structure.”

The deal offers an affordable way for tenants to live in a high-end building. The 26-story complex will feature great views, with underground parking and retail on the first floor. The amenities include those more typical of a luxury community, such as a fitness center, children’s playroom, resident lounge and a large outdoor terrace on the 25th floor.

Making It Affordable

Nearly 17 percent of the units are affordable to low income residents, while almost 28 percent are workforce housing.  In addition, incomes for market rate tenants are capped at 165 percent of Area Median Income (AMI).

  • 90 units at 57% AMI or less (affordable or low income)
  • 100 units at 125% AMI or less (workforce or moderate income)
  • 49 units at 130% AMI or less (workforce or moderate income)
  • 299 units capped at 165% AMI (market rate)

Getting around in a busy place like NYC can be difficult. With the transit station right next to The Crossing, residents will find it easy to get to Manhattan, Brooklyn, Queens, or the airport with relatively few if any transfers—making this development ideal for workforce housing.

The project is considered a critical component of NYC Mayor De Blasio’s affordable housing plan, and is being developed with the Housing Plan’s Inclusionary Housing Program and middle-income program.  The Developer, BRP, worked closely with the New York City Housing Development and Preservation Department and HDC.

In addition to HDC issuing bonds, the two agencies will provide more than $54 million in subordinate, subsidized loans—a significant capital contribution showing the city’s considerable commitment. The project also secured a 40-year full tax abatement to help get it built. The project exemplifies how various funding sources can successfully come together to make affordable housing projects possible.

 

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RICHMAC Funding provides $360M in affordable housing loans

By richmangroup,

RICHMAC Funding LLC (RICHMAC), a national multifamily housing mortgage lender and an affiliate of The Richman Group of Companies (Richman), announced today that it provided over $360 million in loans in 2016 to develop nearly 4,000 units of affordable housing across the country.

This is only the second full year of operations for RICHMAC as a Freddie Mac, FHA, and Fannie Mae lender.

It is managed by Mathew Wambua, former commissioner of the New York City Department of Housing Preservation and Development.

 

RICHMAC’s loans support new construction, preservation and acquisition loans for low-income properties, including 2,900 units of extremely low-income housing, and mixed income development.

The lender has become know for its work with complex, highly structured deals with numerous public and private counterparties.

“We are thrilled to have come out the gate strong and proud to have worked with mission-driven clients across the country, from New York to California, to fund affordable housing development,” said Mathew Wambua, managing director, RICHMAC Funding.

Properties closed on in 2016 have over $800 million in development costs and include:

Crossing at Jamaica Station, Queens; developed by BRP Companies with 539 mixed income units

New Settlement Apartments, Bronx; developed by Settlement Housing Fund, Inc. with 454 affordable units

Carmen Parsons & Judge Gilbert Ramirez, Bronx; developed by New Vision Community Redevelopment with 194 affordable units

Grace Towers Apartments, Brooklyn; developed by Omni New York, LLC with 168 affordable units

Plaza Residences, Brooklyn; developed by Omni New York, LLC with 385 affordable units

John Paul II Apartments, Bronx; developed by New York Catholic Homes, Inc. with 69 affordable units

Target V Apartments, Bronx; developed by Omni New York, LLC with 83 affordable units

In 2016 RICHMAC also supported the development of five affordable housing developments with nearly 540 units across Texas, a 302-unit development in Los Angeles, 160-unit building in Columbus, Ohio, a 130-unit development in Puerto Rico, and nearly 400 units in Yonkers, NY.

“Richmac has come out of the gate very quickly. I think a lot of their early success relates to their ability to come up with outside the box solutions to difficult problems while working on highly complex deals which have significant public and private counterparty involvement.” said Chuck Brass, partner, Forsyth Street, a real estate and consulting firm.

RICHMAC is working on expanding significantly during 2017, broadening its geographic reach, diversifying its core products to reach an even broader set of needs for affordable housing developers, and continuing to grow all their GSE platforms.

“Having the Richman brand support us has enabled us to do more and we are looking forward to an even more successful 2017,” concluded Wambua.

 

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The Richman Group Starts Construction on Mixed-Use Apartment Community in Downtown San Diego

By richmangroup,

SAN DIEGO, CA (May 24, 2016) – The Richman Group of California Development Company has started construction on a seven-story luxury apartment building with 5,841 square feet of ground floor retail space on a 0.57-acre site in Downtown’s East Village. The mixed-use project called F11 will front on the north side of F Street between 11th Avenue and Park Boulevard in the tech/design innovation hub called the I.D.E.A. District.

F11 will feature 99 apartments (11 one bedrooms, 51 two bedrooms and 37 studios), parking for 103 vehicles in a multi-level partially subterranean parking garage and extensive recreational amenities. The project is scheduled to open in early 2018.

Architects DesignARC designed a modified H-shaped building that showcases a large indoor/outdoor activity center on the third floor with a luxurious pool/spa area, entertainment center and outdoor kitchen. Other amenities include a fitness center and indoor bocce ball court.

The development team also includes Nexus Planning Consultants, landscape architects Wimmer Yamada and Caughey and general contractor Cannon Constructors.

The Richman Group of California, which is partnering with the long-time property owner Shearn H. Platt, is a subsidiary of The Richman Group Development Corp., ranked in the top seven of multi-family apartment owners in the United States. Financing for the $45 million project was provided in part by PNC Real Estate and The Richman Group (TRG).

“Since I grew up here and have spent much of my career in San Diego, I’m delighted to start construction on The Richman Group’s first San Diego project,” said Luke Daniels, the president of The Richman Group of California Development Company, who helped establish the company in January 2014. Daniels was a key member of the development team for several iconic San Diego projects, including Park Laurel overlooking Balboa Park and Mission Hills’ 1Mission, which earned the Gold Nugget Grand Award for best mixed-use project in the Western United States.

The Richman Group of California has developed an impressive portfolio in a short time. This month, the company completed construction of its first project, Ventana, a mixed-use project in downtown Fullerton with 95 affordable apartments for seniors and 3,244 square feet of ground floor retail space, and finished the foundation for Sage, a five-story apartment community in Cerritos with 132 market-rate apartments and deluxe recreational amenities.

Later this year, The Richman Group of California will break ground on a 23-story, high-rise apartment tower across the street from the Central Library in Downtown San Diego, at 330 13th Street. The project, designed by DesignARC, and Rob Wellington Quigley, FAIA, of San Diego and landscape architect Spurlock Poirier of San Diego, is planned for 222 apartments and more than 7,000 square feet of commercial space, as well as an adjoining low-rise building, which will include two penthouses, a restaurant with extensive outdoor seating and a park-like open space corridor.

 

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The Richman Group of California Starts Construction on F11, a 7-Story, Mixed-Use Project with 99 Apartments and 5,841 Square Feet of Commercial Space in Downtown San Diego

By richmangroup,

San Diego, CA (May 24, 2016) – The Richman Group of California Development Company has started construction on a seven-story luxury apartment building with 5,841 square feet of ground floor retail space on a 0.57-acre site in Downtown’s East Village. The mixed-use project called F11 will front on the north side of F Street between 11th Avenue and Park Boulevard in the tech/design innovation hub called the I.D.E.A. District.

F11 will feature 99 apartments (11 one bedrooms, 51 two bedrooms and 37 studios), parking for 103 vehicles in a multi-level partially subterranean parking garage and extensive recreational amenities. The project is scheduled to open in early 2018.

Architects DesignARC, Inc. designed a modified H-shaped building that showcases a large indoor/outdoor activity center on the third floor with a luxurious pool/spa area, entertainment center and outdoor kitchen. Other amenities include a fitness center and indoor bocce ball court.

The development team also includes Nexus Planning Consultants, landscape architects Wimmer Yamada and Caughey and general contractor Cannon Constructors.

The Richman Group of California, which is partnering with the long-time property owner Shearn H. Platt, is a subsidiary of The Richman Group Development Corp., ranked in the top seven of multi-family apartment owners in the United States. Financing for the $45 million project was provided in part by PNC Real Estate and The Richman Group (TRG).

“Since I grew up here and have spent much of my career in San Diego, I’m delighted to start construction on The Richman Group’s first San Diego project,” said Luke Daniels, the president of The Richman Group of California Development Company, who helped establish the company in January 2014. Daniels was a key member of the development team for several iconic San Diego projects, including Park Laurel overlooking Balboa Park and Mission Hills’ 1Mission, which earned the Gold Nugget Grand Award for best mixed-use project in the Western United States.

The Richman Group of California has developed an impressive portfolio in a short time. This month, the company completed construction of its first project, Ventana, a mixed-use project in downtown Fullerton with 95 affordable apartments for seniors and 3,244 square feet of ground floor retail space, and finished the foundation for Sage, a five-story apartment community in Cerritos with 132 market-rate apartments and deluxe recreational amenities.

Later this year, The Richman Group of California will break ground on a 23-story, high-rise apartment tower across the street from the Central Library in Downtown San Diego, at 330 13th Street. The project, designed by DesignARC, Inc., and Rob Wellington Quigley, FAIA, of San Diego and landscape architect Spurlock Poirier of San Diego, is planned for 222 apartments and more than 7,000 square feet of commercial space, as well as an adjoining low-rise building, which will include two penthouses, a restaurant with extensive outdoor seating and a park-like open space corridor.

About The Richman Group

Founded in 1987, The Richman Group has grown into one of the nation’s largest privately owned residential real estate investment, development and asset management firms. The Richman Group has virtually every expertise in-house, from architects to property managers. The company is headquartered in Greenwich, Connecticut, and has 15 regional offices, serving communities in 49 states, Washington D.C., Puerto Rico, the Virgin Islands and Guam. Richman Real Estate Investments Inc. has raised almost $10 billion in equity for investment in almost 1,400 apartment projects. Richman Property Services Inc. manages more than 14,000 rental units. Richman Asset Management Inc. provides asset management services to nearly 100 public, private and institutional real estate investment funds, which own approximately 115,000 residential units. In 2014 The Richman Group established the California division and named multi-family developer, Luke Daniels, president of The Richman Group of California Development Company, LLC. The Richman Group of California is located at 7817 Herschel Avenue, Suite 102, La Jolla, Calif.

 

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Richman Ascension Breaks Ground on $51M Luxury Community in Dallas

By richmangroup,

Dallas, TX (February 16, 2016) – The Richman Group’s affiliate Richman Ascension recently broke ground on its first multifamily project in the Dallas area. The new $51 million luxury apartment community known as The Parc at White Rock is scheduled to open in fall 2016.

The Parc at White Rock will offer 291 luxury apartments with studio, one- and two-bedroom floorplans ranging between 580 and 1,230 square feet.

Located at the doorstep of the popular White Rock Park, the community will feature a variety of amenities, including a two-level clubhouse with club room, state-of-the-art fitness center with yoga/spin studio, media lounge, resort-style pool and four garden courtyards. The five-story complex is located within walking distance to the White Rock DART station and also close to major transportation arteries, offering residents the opportunity of an easy commute.

“We’re incredibly excited about our new venture in the Dallas market,” Kristin Miller, president of The Richman Group Development Corp., said in prepared remarks. “We are committed to bring to market a community infused with the same vibrancy that exists in the nation’s fourth-largest metro area. From responsive floor plan designs to innovative amenities, The Parc at White Rock will be the perfect complement to our residents’ lives just five miles from downtown Dallas overlooking scenic White Rock Park.”

 

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Trio of Richman Senior Housing Developments That Accent Miami’s Reemerging Skyline Find Quick Popularity

By richmangroup,

MIAMI, Fla. (February 2, 2015) – The Richman Group’s trio of affordable senior housing developments that now grace Miami’s reborn West Brickell area is proving the old saying that good things in life come in threes.

The apartments, for adults 55+, leased up in just four weeks after each receiving its certificate of occupancy.

“We did anticipate a quick lease up because there is enormous demand for high quality affordable housing in Miami,” noted Executive Vice President for The Richman Group of Florida, Inc. “The product that we delivered was of the highest quality in a location that has seen very little supply in past years.”

One of the most expensive cities for renters is Miami, where rents, on average, consume 43 percent of the typical household income, up from a historical average of just over a quarter.

Richman Property Services, the management company for the buildings, has received very favorable comments on the location and design.  Residents are pleased to be in a reemerging West Brickell neighborhood, close to so much including convenient shopping, employment, local museums, parks and restaurants.

 

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Richman Group Building $47 Million Azura

By richmangroup,

KENDALL, Fla. (July 20, 2015) – The Richman Group of Florida, Inc. has begun construction on Azura, a $47 million luxury apartment community in Kendall.

Azura is the 5th multifamily luxury residential project that The Richman Group of Florida, Inc. has closed on in Florida within the last 12 months.

The 240 unit community is comprised of eight three-story buildings which encircle two lush courtyards and a resort pool with a separate 6,683 two-level clubhouse. Completion is scheduled for Summer of 2016.

“Azura’s desirable suburban in-fill location within Miami Dade County is an excellent area to offer new luxury garden apartments. The property is convenient to primary transportation routes easily reaching major employment centers including the Miami International Airport. Residents will enjoy close proximity to popular nature parks and preserves, the world famous Zoo Miami attractions, and a variety of upscale shopping venues.” said Todd Fabbri Executive Vice President for The Richman Group of Florida, Inc.

 

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Richman Group Begins Construction On $56 Million Grady Square

By richmangroup,

TAMPA, Fla. (July 17, 2015) – The Richman Group of Florida, Inc. has begun construction on Grady Square, a $56 million luxury apartment community in the heart of the Westshore area of Tampa.
In the last 12 months, The Richman Group of Florida, Inc. has closed on five multifamily luxury residential projects located in South Florida and Tampa, with a total of over 1500 apartment units and a combined value of $420 million.

Grady Square is located along N. Grady Ave. near West Columbus Ave. and is scheduled to open Summer 2016. The 300 unit community is comprised of four story elevator buildings surrounding three tropical courtyards and a parking garage and will offer impressive studio, one, two and three bedroom apartments ranging from 574 to 1,628 square feet.  Contemporary amenities will include a hotel-inspired two level clubhouse, a 1,700 square foot professional fitness center, yoga/spin studio, meditation lounge, tech center and more.

 

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The Richman Group of Florida – Construction underway on $67 Million Aurora

By richmangroup,

TAMPA, Fla. (July 8, 2015) – Construction is well underway on Aurora, a $67 million luxury apartment community in Downtown Tampa, developed by The Richman Group of Florida, Inc.

Aurora, one of five market rate deals that The Richman Group of Florida has closed on in the last 12 months, is expected to open its doors for leasing in Spring 2016. Located at 124 South Morgan St., Aurora is situated along the new Selmon Greenway bike path and is adjacent to the $1 billion redevelopment project around the Amalie Arena.

“Excitement is growing about Downtown Tampa’s urban waterfront renewal,” said Todd Fabbri Executive Vice President for The Richman Group of Florida, Inc. “Aurora’s modern amenities and chic industrial vibe will enhance this revitalized destination.”

 

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Yonkers Marks Groundbreaking For Grand Park II, Latest Phase Of Ashburton Avenue Revitalization Program

By richmangroup,

Yonkers today celebrated the groundbreaking for Grant Park II, which will add 56 new units of affordable housing on the site of the former Mulford Gardens in the Ashburton Avenue corridor.

Grant Park II is the fourth phase of the redevelopment of the public housing complex, and consists of two four-story buildings that will contain a mix of one, two and three bedroom apartments. They are being made available to individuals and households earning at or below 60 percent of the Area Median Income.

“This is the latest phase of transforming the deteriorated Mulford Gardens into modern and desirable homes for the people of Yonkers,” said Mayor Mike Spano, “We’re not just providing better homes for people who need them, but we’re providing a better neighborhood, and that helps the entire city. This is another step forward for the City of Yonkers.”

Grant Park II is a public-private partnership led by the Richman Group Development Corporation, the Landex Companies, the Municipal Housing Authority of the City of Yonkers, New York State Homes and Community Renewal, and the Yonkers Industrial Development Agency.

 

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