Jonathan Rose, Citi launch $75M housing fund

New York /
Feb.February 21, 2012 04:00 PM

Jonathan Rose Companies said it entered a deal with Citigroup to launch a $75 million affordable housing fund — the largest in the history of the development firm — which will focus on redeveloping and building new properties in New Jersey, Connecticut and Washington D.C.

Jonathan Rose, president of the Manhattan-based firm, said his firm plans to redevelop existing multi-family rentals or build new green housing from the ground up.

Citigroup has an existing affordable housing partner with a rival developer in New York, but has been looking at expanding investments in these communities under the federal Community Reinvestment Act, which encourages banks to expand credit into low-income communities when they open new bank branches or merge with other banks.

Rose told The Real Deal that despite the economy showing signs of a rebound, there is a “tremendous demand“ for affordable housing in these markets, which continue to have high unemployment levels.

The developer is targeting projects needing $25 million to $50 million in capitalization, with a particular emphasis on Section 8 projects or projects that might be about to exit existing affordable housing programs.

Citi Community Capital, the community development financing arm of Citigroup, has invested about $9.4 billion in local communities across the country, resulting in the creation and renovation of 57,000 affordable housing units.

Citi has worked with Rose in the past, as a lender and investor at the YMCA Residences for Women, in White Plains, which offers 193 units of affordable housing for single and low-income women.

Rose said his firm is in talks on several potential projects in Connecticut, where his firm has an existing office, and is in talks on potential sites in New Jersey. Rose is working on the master plan for the city of Newark.


Related Articles

arrow_forward_ios
Developer Jonathan Rose Maps a Bold Future for New York City
WATCH: How to plan the New York City of 2050
WATCH: How to plan the New York City of 2050
Jonathan Rose and 350 St. Ann’s Avenue (Google Maps)
Jonathan Rose nabs Bronx apartment project for $64M
Jonathan Rose nabs Bronx apartment project for $64M
Citigroup CEO Michael Corbat (Credit: Getty; iStock)
Doublewide cubicle? Citigroup eyes suburban offices so workers can spread out
Doublewide cubicle? Citigroup eyes suburban offices so workers can spread out
Jonathan Rose and 65 West 96th Street (Credit: Rose by TRD)
Jonathan Rose Cos. snags UWS affordable-housing tower for $94M
Jonathan Rose Cos. snags UWS affordable-housing tower for $94M
Nightingale’s Eli Schwartz and 111 Wall Street (Credit: Google Maps)
Nightingale partnership closes on $175M purchase of 111 Wall
Nightingale partnership closes on $175M purchase of 111 Wall
Extell Development chairman Gary Barnett with 555 Tenth Avenue and 524 East 14th Street (Credit: Barnett by Anuja Shakya, 555ten and StreetEasy)
Extell scores $700M refi for three Manhattan buildings
Extell scores $700M refi for three Manhattan buildings
Anna Castelini and 601 Lexington Avenue (Credit: LinkedIn and Andrew Moore via Flickr)
DeKalb Market Hall creator bringing new food hall to Midtown
DeKalb Market Hall creator bringing new food hall to Midtown
Wells Fargo, JPMorgan Chase and Citigroup each recorded a rise in second quarter profits in their consumer divisions (Credit: iStock)
Banks see uptick in mortgages, but remain wary ahead of potential Fed interest rate cut
Banks see uptick in mortgages, but remain wary ahead of potential Fed interest rate cut
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...