Beacon Communities has acquired National Development Corp. (NDC), a company with a portfolio valued at over $250 million.
The acquisition of Pittsburgh-based NDC, which was founded in 1969, comprises 59 properties built in the 1970s and 80s, the majority of which are affordable. Boston-based Beacon purchased the business from its founding partners.
The move adds 5,300 units to Beacon’s portfolio, bringing the total units owned to approximately 17,500. The transaction expands the firm’s presence into 14 states, adding Florida, Kentucky, Louisiana, Ohio, West Virginia, and the District of Columbia.
The company plans to refinance and rehabilitate many of the properties in the portfolio using the low-income housing tax credit program so that the properties continue to serve as high-quality affordable housing, said officials.
The affordable housing industry has recently seen several large portfolio acquisitions. Earlier this year, Enterprise Homes acquired 4,153 apartments in 43 developments from The Shelter Group, and Hudson Valley Property Group acquired 1,009 affordable housing units throughout northern New Jersey that had been owned by Kline Enterprises and formerly managed by First National Properties.
Beacon is one of the nation’s largest affordable housing owners and developers. Prior to this acquisition, the full-service real estate company owned approximately 12,200 apartments across 60 communities throughout New England, Maryland, New York, Pennsylvania, and Virginia. In August 2016, Beacon opened an office in Albany, N.Y., as a result of the acquisition of an Albany-based development company.
The NDC deal nearly doubles Beacon Communities’ team, bringing Beacon’s total number of employees to more than 1,000. With this acquisition, the firm also significantly expands its third-party property management under the brand of NDC Real Estate Management, consisting of over 120 properties and 7,250 units, said officials.
“At Beacon Communities, we pride ourselves on being at the forefront of providing high-quality, affordable housing,” said CEO Pam Goodman. “Doubling our staff and simultaneously expanding into five new states and Washington, D.C., was a major undertaking and is a testament to the quality of our people as well as our reputation for getting things done.”