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The Richman Group and Brilliant Corners Announce Grand Opening of Las Palmas Apartments

By Marlena DeFalco,

New apartment community provides 53 units of supportive housing to Wilmington neighborhood

The Richman Group of California, an innovator in multifamily development, and Richman Property Services, a national leader in multifamily management, in partnership with Brilliant Corners, a leading supportive housing developer and services provider in California, today celebrated the grand opening of Las Palmas Apartments, a new supportive housing community in the Wilmington neighborhood of Los Angeles. The development is financed in part by HHH Challenge funds from the Los Angeles Housing Department and California Department of Housing and Community Development No Place Like Home funding, administered by the Los Angeles County Development Authority (LACDA) and the Los Angeles County Department of Mental Health.

Designed by award-winning architecture firm KFA, Las Palmas Apartments successfully reuses unique architectural features of the original structure — a vacant single-story grocery store — and blends them with a new four-story residential wing. The 54-unit adaptive reuse project will provide 53 units of permanent supportive housing for people who have experienced homelessness, as well as an onsite manager’s unit.

 

The grand opening featured a proclamation from Los Angeles County Fourth District Supervisor, Janice Hahn, who represents the Wilmington neighborhood, remarks from Carrie Esparza, Mental Health Program Manager IV for the Los Angeles County Department of Mental Health, and the presentation of a certificate by Lynn Katano, Director of the Housing Investment and Finance Division for the Los Angeles County Development Authority (LACDA). The event also provided an opportunity for attendees to tour the site and write welcome cards for new residents.

“The development of Las Palmas was an intensive, collaborative effort, and we’re so proud of the work from our team, our development partners, and municipal leaders to see this essential community to the finish line,” said Rick Westberg, Executive Vice President at The Richman Group — co-developer, co-owners and on-site property manager for Las Palmas. “The redevelopment of this site required the cooperation and support of numerous organizations, city departments and offices, but the results speak for themselves and represent an important step toward addressing the local affordable and supportive housing need.”

Las Palmas is the first development partnership between The Richman Group and Brilliant Corners.

“The opening of Las Palmas Apartments marks a significant milestone for Brilliant Corners, representing our first multifamily permanent supportive housing development in LA County,” said William F. Pickel, Chief Executive Officer at Brilliant Corners. “Through adaptive reuse projects like Las Palmas, we are utilizing the existing built environment to provide much-needed housing and supportive services to our new residents. We are immensely grateful to our partners and everyone who made this project possible.”

Located at 1355 N. Avalon Blvd., Las Palmas features fully furnished homes with a mix of 37 studio apartments, 16 one-bedroom homes and a two-bedroom manager’s unit. The property includes a central open-air courtyard, community room, bike storage room, laundry facility and resident services rooms. All utilities are included. Residents will receive onsite case management services from Brilliant Corners.

“For dozens of people who have reached the end of their ropes and find themselves living on our streets, this place is going to be that lifeline they so desperately need,” said Los Angeles County Fourth District Supervisor, Janice Hahn. “These 53 beautiful apartments and the welcoming environment that I know everyone here will provide is a far cry from where these residents are coming from. Here they’ll know they’re safe and, most importantly, cared about.”

Connectivity is uncompromised at Las Palmas. The location also puts residents in close proximity to LA DASH bus routes and other public transit options for easy access to downtown LA and the metro region.

“The LACDA is honored to be part of the team that contributed to the creation of 53 fully furnished housing units for individuals who have experienced homelessness,” said Emilio Salas, LACDA Executive Director. “Once a vacant, single-story grocery store, Las Palmas Apartments now offers beautiful housing with access to transportation to help its residents manage their everyday needs.”

“The Los Angeles County Department of Mental Health is dedicated to supporting every person’s journey of recovery and wellbeing,” said Dr. Lisa H. Wong, Director of the Los Angeles County Department of Mental Health (LACDMH).  “Our investment in Las Palmas demonstrates our commitment to ensuring each individual in our care has a place they can call their own, and a community to call home while they start new chapters of their lives with renewed hope and support.”

About The Richman Group
The Richman Group is one of the nation’s leading real estate development, investment, and property management firms, specializing in the creation of premier residential communities. With a portfolio spanning luxury apartments, affordable housing, and mixed-use developments, The Richman Group is committed to delivering innovative and sustainable living solutions. Our dedication to quality, resident satisfaction, and community enhancement has made us a trusted name in the industry. From groundbreaking developments to thoughtful property management, we strive to elevate the standard of living for our residents across the United States. For more information, please visit www.TheRichmanGroup.com.

About Brilliant Corners
Brilliant Corners is a supportive housing nonprofit providing innovative housing and housing-related services to individuals transitioning from or at risk of homelessness or institutional involvement. Our supportive housing programs and properties create rapid access to housing resources through landlord engagement, rent subsidy administration, and supportive service integration strategies. We develop, own and managed state-of-the-art licensed residential care homes, as well as multifamily permanent supportive housing. With over 17,000 people housed and served to date, Brilliant Corners offers a variety of innovative supportive housing models that meet the unique needs of each individual we serve. Learn more at brilliantcorners.org.

Richman Nabs $28M Refi for New Boca Rental

By Marlena DeFalco,

Richman Group secured $28 million from MetLife’s real estate lending arm for a residential community in Boca Raton, Fla., property records show. 

Called Boca Vue, the 345-unit property sits on 31 acres at 9260 Boca Vue Drive, between the Florida Turnpike and U.S. Highway 441 in Boca Raton.

To learn more, read Commercial Observer’s article here

New 50-unit affordable apartment complex opens in south St. Pete

By Marlena DeFalco,

A 50-unit affordable housing complex in south St. Pete has completed construction and is now open. Leaders from the City of St. Petersburg, Pinellas County, and the developers were on hand at a ribbon-cutting ceremony earlier this week to christen the new property.

The Shores Apartments is located at 2605 31st Street South and was developed by The Richman Group with funding from the City of St. Petersburg and Pinellas County.

Read the St Pete Rising article here.

Greenwich-based affordable housing developers plan $450M in new projects in US, Puerto Rico

By Marlena DeFalco,

A large Greenwich-based real-estate and development company that owns and operates housing complexes from Florida to California is upping its commitment to affordable housing.

The Richman Group Affordable Housing Corporation this week announced it had raised $450 million to acquire, rehabilitate and-or build more than 50 properties across the U.S. and Puerto Rico. The funding will provide “safe, quality and affordable” rental units to more than 4,300 households, the company stated.

Read the Greenwich Times article here

The Richman Group Closes $450 Million in Three Housing Credit Funds

By Marlena DeFalco,

The Richman Group Affordable Housing Corp. announced it has raised $450 million in equity financing across three separate multi-investor affordable housing tax credit funds. Collectively, these funds will construct or acquire and rehabilitate over 50 properties and provide safe, quality, affordable rental units to more than 4,300 households.The institutional investors in these funds include the nation’s leading banks and insurance companies.

“Each fund offered a unique investment opportunity to our investors,” said Stephen M. Daley, executive vice president, who leads Richman’s equity-raising activities. “The largest of three funds offered a diversified pool of properties located throughout the U.S. The second fund will acquire properties located in the Western states and was an ideal vehicle for investors with a targeted geographic focus. The third fund will acquire properties located exclusively in Puerto Rico. This was Richman’s second Puerto Rico-focused fund and will provide much-needed housing for the island’s residents.”

To learn more about Richman’s fund, read on at Affordable Housing Finance

Metro-adjacent apartments unwrapped at 11311 Chandler in North Hollywood

By Marlena DeFalco,

Across the street from Metro’s North Hollywood Station, construction is in the home stretch for a new mixed-use apartment complex from the Richman Group.

The Chandler NoHo apartments, located at 11311 Chandler Boulevard, consist of a seven-story building that will feature 127 studio, one-, two-, and three-bedroom apartments above a CVS Pharmacy on the ground floor. Plans also call for a 218-car garage in a podium structure.

Learn more about The Chandler in this Urbanize LA article.

The Richman Group Development Corp Selected as Master Developer by the Virgin Islands Housing Authority

By richmangroup,

TRG Community Development, LLC, a division of The Richman Group Development Corporation, was recently selected as Master Developer by the Virgin Islands Housing Authority (VIHA) for the redevelopment of Public Housing in St. Croix, U.S. Virgin Islands. As the Master Development partner, TRG Community Development will work with VIHA to complete a master plan that provides a long-term sustainable development plan to implement its Portfolio Repositioning Strategy for the island of St. Croix that is designed to transform its public housing portfolio to housing-of-choice that incorporates significant energy-efficient elements and energy-resilient concepts.

VIHA is empowered with the responsibility for planning, constructing, maintaining and managing public housing developments on the islands of St. Croix and St. Thomas, which comprise approximately 15% of the total territorial housing stock. VIHA owns and manages approximately 3,014 public housing units on St. Thomas and St. Croix and administers approximately 2,029 housing choice vouchers on St. Thomas, St. Croix and St. John. In 2017, Hurricanes Irma and Maria devastated several Caribbean Islands, including the United States Virgin Islands. In November 2017, HUD allocated $243 million of Community Development Block Grant Disaster Recovery Program (CDBG-DR) funds to the U.S. Virgin Islands to support long-term recovery efforts.

View full press release

 

Richman Group lands $189M for massive East Harlem project

By richmangroup,

Richman Group has landed a $188.5 million financing package to construct of one of the biggest projects coming to New York City.

The loans for 201 East 125th Street in East Harlem come from Citigroup, the Department of Housing Preservation and Development and the New York City Housing Development Corporation, according to the Commercial Observer. Freddie Mac has also agreed to provide the project with a credit enhancement on a future permanent financing agreement.

The project will stand 19 stories tall and contain 404 units across 421,000 square feet, including 61,000 square feet of ground-floor retail. S9 Architecture is designing the project, which was the largest filed in New York City in December.

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.

 

View Full Press Release

 

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.

 

View Full Press Release