History • Over 35 years in business We Are… • Specialists in multi-family, mixed-use, affordable and market-rate development • Recognized experts in complex, multi- Developers with a depth of experience, a phase, mixed-finance, urban and suburban reputation for quality, a commitment to diversity development and a broad vision that allows us to consistently produce great spaces. • 180+ Developments/14,000+ units
RAD UPDATE
RAD – Rental Housing Demonstration 1.7B – Total Construction Costs Less than 25K in Rehab – 48% More than 25K in Rehab – 35% New Construction – 17% RAD FIRST UNITS PROJECTS COMPONENT Transactions 2015 – RAD Closings 13,653 124 (53% of deals closed in the 4 th Qtr.) TOTAL CLOSED 27,000+ 258 Financing Type Non-FHA FHA 4% Tax Credits 20l% 9% 9% Tax Credits 20% 2% Mortgage Only 6% 6% No Debt 83% 17% RAD Stats (as published in the January 2016; Issue 15 RAD Newsletter )
WYMAN HOUSE Baltimore, MD 175 units
RAD – Housing Authority Baltimore City (HABC) PROCUREMENT PROCESS 18 mixed population (Seniors/NEDS) public housing projects Issued Two Step Procurement: June 2013 RFQ – Ranked Development Companies Sept 2013 RFP – Determined Building(s) Awarded to: 11 Development Firms
Pennrose - Ranking of HABC 18 Buildings 1. Location of Building (Neighborhood Characteristics) 2. Proximity to existing Pennrose Developments 3. % of Seniors vs. NEDS 4. # of Units 5. Financial Analysis 6. Physical Condition of Building Pennrose only chose to rank 5 out of the 18 buildings. We were awarded Wyman House , our 2 nd ranked building. Ultimately, this was a decision of knowing that the building would be a part of our portfolio. NOTE: Only 3 other developers chose to only rank their top 5 choices. Other developers were awarded two projects.
Developer Collaboration Maryland Affordable Housing Coalition (MAHC) developed a subcommittee by which the developers and their legal counsels worked together to deal with the issues below: Wyman House and 1 st Component Deals Deal terms with HABC RAD – Control Requirement Investor & Lender Requirements RAD Waivers (11 requested) Resident Advocate Input – Resident Communications Consent Decrees/DOJ - MDLC Operational Complexities – Waitlist Administration - Antennae Leases/Insurance/Costs/Income - Subsidy Payments/Deposits/ - Tenant Files/Over-Income Residents - BED BUGS Closing (Wyman House) – Dec 2015
Wyman House Apartments Baltimore, MD Project Overview: • Partnership with the Housing Authority of Baltimore City • In-Place Rehab of 168 Mixed Population Affordable Units (seniors and non-elderly) Adding seven new units on 2 nd Floor • • 168 PBRAs through RAD program/7 LIHTC (175 units) • Renovation of kitchens, bathrooms, common areas, management offices, etc. • Total Project Cost: $31.2M Schedule: • Closed December 2015 • Construction Completion February 2017
Wyman House – Sources and Uses 168 existing/175 total SOURCES OF FUNDS Debt Service Financing Source of Funds Lender Amount Taxable Bonds $ 14,600,000 Tax-exempt Bonds AGM/Wells $ 7,339,000 Total Debt Service Financing $ 7,339,000 Cash Flow Financing and Grants Source of Funds Lender Amount Rental Housing Funds Maryland DHCD $ 961,773 CIF Maryland DHCD $ 541,963 HABC Other (TAKE BACK $ 12,300,000 Total Cash Flow Financing $ 13,803,736 Equity Type of Equity Amount Low Income Tax Credit Proceeds $ 9,985,860 Interim Income ( occupied rehabilitation pr $ 157,855 Total Equity $ 10,143,715 Total Sources of Funds (must equal Total 31,286,451 $ USES OF FUNDS Type of Uses Per Unit $ Amount Construction or Rehabilitation Costs $ 11,731,957 67,040 Fees Related to Construction or Rehabili $ 1,349,350 7,711 Financing Fees and Charges $ 2,071,710 11,838 Acquisition Costs $ 12,421,496 70,980 Total Development Costs $ 27,574,513 157,569 Developer's Fee $ 2,500,000 14,286 Syndication Related Costs $ 180,306 1,030 Guarantees and Reserves $ 1,031,631 5,895 Total Uses of Funds $ 31,286,451 $ 178,780
Wyman House Apartments Existing Conditions - Lobby
Existing Conditions – Community Room
Wyman House Apartments Existing Conditions
Wyman House Apartments Existing Conditions - Library
THANK YOU
MISSION Pennrose, in cooperation with its partners and key stakeholders, strives to develop high-quality, expertly managed properties -- which provide long-lasting enhancements to residents , their communities , and host municipalities .
CORE PRINCIPLES We are committed to high-quality developments: Solidly financed; attractively designed; and constructed for energy efficiency and durability We stay for the long-term: Our business model is based on sustained ownership and our properties are designed to stand the test of time We understand that quality management is the key to our ongoing success: Attentive maintenance, appropriate services, and a focus on our residents set Pennrose developments apart
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