Dropping one spot to No. 2 on AFFORDABLE HOUSING FINANCE's list of companies completing acquisitions in 2010, New York-based Related Affordable had another active year on the acquisition front.
The firm, which focuses on only acquisition/ rehab deals, completed 17 acquisitions in 2010. Fourteen were low-income housing tax credit (LIHTC) acquisitions with 1,565 units, and the other three were general partner interest acquisitions with 211 units. In 2009, Related Affordable acquired 12 projects with 2,062 units.
The firm, which owned 90 projects and 16,325 units as of Jan. 1 and is No. 7 on AFFORDABLE HOUSING FINANCE's Top 50 owners list, has aggressive goals for 2011.
“We project to close on 18 to 20 deals this year, which is higher than the past few years but may set the bar at the level for us going forward into 2012 and beyond, depending on debt and equity availability,” says President Mark E. Carbone.
As for trends in financing acquisitions, he says equity pricing has increased appreciably and debt financing has remained strong.
Carbone adds that Related Affordable has taken full advantage of the New Issue Bond Program, which provides temporary financing for state housing finance agencies to issue new housing bonds. Under the program, the Treasury Department purchases securities of Fannie Mae and Freddie Mac backed by these new bonds.
The firm is primarily interested in acquiring Sec. 8 properties with projectbased contracts that are facing expiration, Sec. 236 properties in need of rehab, Sec. 42 LIHTC properties with expiring low-income restrictions, and other assisted properties with federal or state subsidies nationwide.
