The Real Deal Miami

Under investigation, Carlisle Development Group aims to transfer 4 projects while continuing to manage dozens more

The third-largest affordable developer in the U.S. agreed to sell its affordable division last month

September 04, 2013 12:40PM

  • Print
Kenneth Naylor

Kenneth Naylor

Troubled subsidized housing giant Carlisle Development Group will hand off four projects if Miami-Dade commissioners agree to the transfer in a meeting Wednesday.

Carlisle, the third-largest affordable-housing developer in the U.S., sold its affordable housing division to South Florida-based real estate conglomerate the Atlantic | Pacific Companies for an undisclosed sum last month amid a federal grand jury investigation into allegations the company defrauded taxpayers by padding construction costs.

Carlisle hopes to transfer the four projects to Atlantic | Pacific as part of the deal, including the Seventh Avenue Transit Village, the Northside Transit Village, Island Living and Lincoln Gardens — while retaining 25 existing county developments, managing 2,855 public-housing units, according to the Miami Herald.

The transfer requires approval from commissioners, as well as permission from other agencies, including the U.S. Department of Housing and Urban Development and the Federal Transit Administration.

The resolution, sponsored by Miami-Dade Commission Audrey Edmonson, also requires county staff to conduct due diligence to evaluate whether Atlantic | Pacific is strong enough financially to take on the Carlisle projects.

The company said last month that Carlisle’s affordable-housing business will be rebranded as A|P Communities and be headed by Kenneth Naylor — who used to be Carlisle’s chief operating officer.

A federal grand-jury subpoena was issued in January that focused on Carlisle’s chief executive Matthew S. Greer, retired CEO and founder Lloyd J. Boggio and general contractor Michael K. Runyan.

Listed in the subpoena were two of Carlisle’s high-rise rental projects, Villa Patricia in Little Haiti and Amber Garden in Allapattah, both of which will remain under the company’s management following the completion of the sale of the affordable-housing division to Atlantic | Pacific. [Miami Herald]Emily Schmall

MENU