Thursday, February 05, 2009
Urban Strategy America Fund and Beacon Communities Fund I Purchase Errichetti Apartment Portfolio
404 units of senior housing in Waterbury, Southington and Wolcott
Hartford, Conn. (December 1, 2008) - The Urban Strategy America (`USA`) Fund, a New Boston real estate investment fund, and Beacon Communities Fund I Limited Partnership (`Beacon Fund`) announced the joint-venture purchase of a 404-unit portfolio of senior housing apartments from the Errichetti family. The portfolio consists of eighteen buildings on four separate properties: Exchange Place Towers, Flanders West, Countryside I and Countryside II. The portfolio is located in Waterbury, Southington and Wolcott, CT.
The Errichetti Portfolio was extremely attractive to the USA Fund and our investors, said Kirk Sykes, President, Urban Strategy America Fund. It furthers our goal of providing affordable housing to the communities we invest in. We hope that this investment continues to demonstrate our commitment to the state of Connecticut where we have been investing for more than ten years. We are also looking for additional Section 8 projects in key markets as we continue to diversify our portfolio.
From the investment perspective, this acquisition will bring a stable, consistent cash flow to the fund with the in-place government contracts, stated John Dragat, Chief Investment Officer, Urban Strategy America Fund. The buildings are 99% leased which makes this an attractive investment for the portfolio.
From Beacon`s perspective, this is a further illustration of our deep expertise in affordable housing, specifically as relates to pairing creative financing structures with regulatory and financial restrictions. The Errichetti Portfolio is a solid addition to the 8,000 units of affordable housing that we currently control, stated Mark Epker, Senior Vice President of Acquisition, Beacon Communities LLC. We are expanding our track record of providing tailored exit strategies for general partners and investors in affordable housing that may not otherwise exist.
Exchange Place Towers is a 150-unit 11-story apartment building developed in 1983 and located near the town square in Waterbury. Flanders West is a 145-unit mid-rise apartment community located in Southington that was developed in 1976. Countryside I and II are a 55- and 54-unit attached townhouse-style apartment communities comprising eight buildings each developed in 1982 and located in Wolcott.
The portfolio purchase was made with funds from USA Fund I, senior mortgage financing from Bank of America and mezzanine financing from Boston Community Capital. The USA Fund was launched in 2004 and executes on the promise of a triple bottom line - generating solid returns to investors, spurring economic development and workforce housing, and promoting environmental sustainability. Boston Community Capital is a community development financial institution focused on building healthy communities where low-income people live and work through socially responsible lending and investing.
The expertise and commitment of Beacon Communities LLC, and The Urban Strategy America (USA) Fund will provide quality housing that will be enjoyed by the existing residents of the Errichetti portfolio, said Maria Barry, Bank of America Community Development Banking Northeast Region Executive. The preservation and creation of affordable housing is a significant priority for our company and we are pleased to support the efforts of our long-standing clients.
Beacon Communities and New Boston`s USA Fund have a deep commitment to preserving affordable housing for low-income seniors and a track record of managing properties that provide quality housing over the long-term, said Rebecca Regan, President of Boston Community Capital`s Loan Fund. This purchase helps ensure the stability of 404 homes for senior citizens living on fixed incomes. We`re proud of the role we could play in making this deal happen.
In Connecticut, New Boston has investments in residential projects in Bridgeport with Lofts 881, and in Niantic at 38 Hope Street. New Boston also currently owns 24 commercial properties in Hartford, New Haven and Fairfield Counties totaling 2 million square feet, as well as 226 class A apartment units in Middletown.
In Connecticut, in addition to the Errichetti Portfolio, Beacon Communities owns and manages approximately 1,000 affordable and market rate apartments in Stamford at Southwood Square, and in New Haven, at Monterey Place and Cambridge Oxford Apartments.
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Solomon McCown & Company