Related Companies celebrates its 35-year anniversary of affordable housing today by announcing a joint venture with Tiki Barber's Tiki Ventures to boost the nation's stock of high quality, affordable housing. The new venture will partner with Centerline Capital Group to purchase and extensively renovate older, existing affordable housing developments as a means to protect, improve and extend housing options in the U.S.
"Related and Centerline are proud to partner with Tiki Barber to forge this very important initiative," said Stephen M. Ross, Chairman of Related Companies and Centerline Capital Group. "Related has been at the forefront of affordable housing development for 35 years, and this venture continues this legacy. Our goal is simple- to help preserve, improve and extend the affordability of our nation's housing stock. These investments in affordable housing are investments in our communities and working families across the country."
Tiki Barber, Chairman and Founder of Tiki Ventures said, "A safe, affordable place to live is the first step towards building a dream. A secure home leads to a more enriched life, with better education, health and employment opportunities. I look forward to working with Related Companies to create thriving communities where families can flourish."
The first phase of the venture will consist of the acquisition and refurbishment of over 3,500 residential units for low-to-moderate income families in Virginia, the home state of Tiki Barber, and North Carolina. Centerline Capital Group will finance approximately $150 million of the project, which will progress over the next three to four years. The vast majority of these housing units are at risk of becoming market rate and therefore contributing to the depletion of the affordable housing stock.
The joint venture will rehabilitate the units and preserve them for tenants at between 50%-60% of AMI for a minimum of 30 years. The venture is also pursuing several opportunities throughout the nation, with an initial focus on New York and New Jersey, including Newark.
New York City Mayor Michael R. Bloomberg said, "Continuing to create and preserve affordable housing is critical to New York's future and is a key component of our PlaNYC agenda. As our City adds nearly one million people between now and 2030, we must make sure that working New Yorkers have quality affordable housing, and this new venture with Related Companies and Tiki Barber will provide a tremendous vehicle to meet our administration's goal of providing 165,000 affordable units-the largest municipal affordable housing plan in the nation's history."
Newark Mayor Cory Booker said, "The creation and preservation of affordable housing is a top priority for my administration. Many of this city's apartment buildings were constructed decades ago and are in dire need of renovation and modernization. Related Companies has a long history of creating affordable housing opportunities, and this joint venture between Related Companies and Tiki Barber to preserve and improve existing affordable units represents an exciting opportunity for Newark as we work to create vibrant, mixed-income neighborhoods."
Marc Schnitzer, CEO and President of Centerline Capital Group said, "Centerline is committed equally to this joint venture to improve and increase affordable housing options across the country. Our company got its start in the affordable housing market, and it still comprises a major portion of our portfolio. We recognize the need for all citizens to have safe, decent shelter, and we constantly work to meet that need."
Mark Carbone, President of Related Affordable said, "Related has a long-standing commitment to affordable housing, and we are pleased to augment our efforts with this exciting partnership with Tiki Barber. These initial investments in Virginia and North Carolina are an opportunity to provide thousands of people at every income level not only an affordable place to live, but a place that they will want to call home."
In 1972, Stephen Ross founded Related Companies, known then as Related Housing Companies, with the goal of financing and developing government assisted, multi-family housing. As Related has grown into a national leader across a spectrum of real estate capabilities, its commitment to preserving and developing housing that is within reach of working families and seniors has never wavered. Related has financed, developed or acquired over 300,000 units of affordable housing across the nation, making it the leading developer and sixth largest manager of affordable housing in the U.S. Related has extensive experience in purchasing, rehabilitating and preserving developments that might otherwise exit the affordable housing unit.
In the area of acquisitions and refinancing, the company pursues properties that meet one of the following criteria: Section 8,with project-based contracts; Section 236, in need of rehabilitation; Section 42 LIHTC, with expiring low-income restrictions; Section 515 FmHA, with loans that can be prepaid; or other assisted properties, including HODAG, HOME, federal or state-financed public housing.
### About Related Companies Heralded as one of the most prolific and visionary developers in the country, Related Companies was formed over thirty-five years ago. Today, Related is considered the most prominent privately owned real estate development firm in the United States. Headquartered in New York City, it has divisions in development, acquisitions, property management, marketing and sales. In 2004, Related completed the development of New York City's newest landmark, Time Warner Center. Related has offices and major developments in Miami, Los Angeles, San Francisco, Chicago and Boston and boasts a team of more than 2,000 professionals. To date, Related has real estate assets worth over $16 billion with another $10 billion currently in development. Related is strongly committed to sustainable design with over $6 billion in green development underway or completed. The firm developed one of the first green residential buildings in the nation, Tribeca Green in Battery Park City, New York, and Chicago's first green residential building, 340 on the Park. Related is currently developing eight new LEED-certified residential buildings. www.related.com
About Centerline Capital Group Centerline Capital Group, a subsidiary of Centerline Holding Company (NYSE:CHC), is a diversified real estate fund manager with over $18 billion of assets under management. Centerline lends, invests and manages capital for the commercial real estate and affordable housing industries. Centerline is headquartered in New York, New York and has over 500 employees in nine offices throughout the United States. www.centerline.com About Tiki Ventures Tiki Ventures pursues business opportunities in real estate, entertainment, sports marketing and media with an emphasis on "giving back" through community involvement, humanitarian aid and educational programs that benefit the economically disadvantaged. www.TikiVenturesllc.com
