Community Preservation Corp. (CPC), The Community Development Trust (CDT), Monadnock Development (MonDev), Red Stone Equity Partners, and the Black Developers Network Triboro (BDN Triboro) announced the closing of a transaction to purchase and preserve a 13-building affordable housing portfolio totaling 1,036 units. The purchase price was $36.5 million.
The buildings are located on 10 properties that were developed by Dunn Development Corp., with two co-developed with L+M Development Partners, in Manhattan, the Bronx, and Brooklyn. All of the apartments will remain affordable to low-income tenants.
The new ownership team is made up of mission-driven nonprofit and for-profit companies with decades of experience in affordable housing finance, construction, maintenance, and management. The group of preservation-focused organizations is dedicated to providing stable, responsible ownership to preserve the long-term affordability and quality of the housing for residents that call these developments home. Ownership that is dedicated to affordable housing preservation can help guard against gentrification, reduce displacement, and contribute to the stability and revitalization of communities.
The portfolio is comprised of high-quality affordable apartments constructed between 2011 and 2017, with all of the rents being income restricted, primarily at levels affordable to tenants earning at or below 60% of the area median income. Many of the buildings also have supportive housing components, combining affordable housing with on-site support services to enable vulnerable populations to live independently and thrive.
“Monadnock is proud to be a partner in this venture to continue the stewardship, investment, and careful oversight of high-quality affordable housing created by Dunn Development. We have the utmost respect for Martin Dunn and intend to build on the legacy he leaves with these 10 properties,” said Nick Lembo, MonDev chairman.
BDN Triboro, a 100% Black-owned entity and part of the new ownership group, is led by Kirk Goodrich and Richard Roberts, two recognized experts and innovators in the affordable housing industry. This transaction is an extension of an existing, decadelong relationship but represents their first venture outside their roles as executives at Monadnock and Red Stone Equity, respectively. It is BDN Triboro’s intention to pursue additional affordable housing and community development opportunities in the future.
“We’re so pleased to have found the perfect long-term stewards for this portfolio of affordable and supportive housing buildings we care so much about. Monadnock, CPC, CDT, Red Stone, and BDN Triboro are the dream team. And with the proceeds supporting social justice and human rights, this is a win many times over,” said Dunn, founder and president of Dunn Development Corp.
In keeping with Dunn Development’s focus as a socially conscious, mission-forward company, a majority of the proceeds from the transaction will be used to capitalize a new charitable organization, the Blue Sky Social Justice Fund, said officials in a statement. The fund is being created to focus on supporting social justice and human rights efforts, including issues related to climate justice, LGTBQI+ rights, food justice, water and energy access, anti-slavery, and Indigenous Peoples issues. Additional proceeds from the transaction are being used to provide financing to the Black Developers Network.