THE FINCH GROUP’S PRIOR PERFORMANCE
This section provides prospective investors with a general background on The Finch Group and its Affiliates (“TFG”) and information on TFG’s prior pivotal transactions, during the late 1980’s and early 1990’s.
From its inception in 1981, TFG has established an impressive track record by applying its extensive experience in evaluating, developing, rehabilitating, marketing, and managing affordable multi-family residential, mixed-use and high-end properties with an entrepreneurial attitude to implement well thought out business plans, on a property specific basis, that realistically reflect the strengths and weaknesses of each individual situation.
The experience and expertise gained from a combination of the development and marketing skills associated with the higher-end residential rental and ownership product, and as well as affordable and subsidized housing, gives TFG the broad knowledge base that is required in acquiring and repositioning under-performing and distressed property.
From 1981 through 1996, TFG was involved with over 10,000 apartment and condominium units ranging from affordable ($40,000) to luxury ($3,000,000, using 1996 valuation). These 10,000 units were a mix of conversion of under-performing multi-family rentals; full rehab of blighted buildings; as well as ground-up new development. These 10,000 units were a mix of conversion of under-performing multi-family rentals; full rehabilitation of blighted buildings; as well as ground-up new developments. In 1996, when TFG’s condominium division was sold, TFG was the largest operator of condominiums in New England. The cumulative valuation of the properties in which TFG was involved exceeded $1.5 billion.
In the early 1990’s, as a result of the New England Real Estate crisis (after successfully and amicably working through its own financial restructurings, including transferring some properties back to several lenders) and drawing on lessons learned from earlier work on distressed subsidized housing properties, TFG became one of the Northeast’s preeminent problem project workout organizations.
Development Transactions Since 1996
- HUD sold (through the City of Calumet City, Illinois) a 934 unit low income housing project to TFG for $1 and provided a $19m dollar upfront grant for the property’s substantial rehabilitation. (1996)
- Fannie Mae provided $10m of credit enhancement to an Illinois Housing Development Authority issued bond. (1998)
- HUD sold (through the City of Cleveland, Ohio) an 820 unit low income housing project to TFG and provided a $25m grant for the property’s total reconstruction. The City of Cleveland provided $9m of infrastructure assistance. (1999)
- Fannie Mae invested $35m in three of TFG projects. (2001 – 2004)
- The State of New York has closed a $25m loan package with The Finch Group (“TFG”) for the substantial rehabilitation of a property originally financed under the identical program as Kennedy Square. (2005)
- Monroe County, N. Y. issued $9.5m of bonds (as part of a larger transaction) to a TFG controlled entity. (2005)
- HUD sold (through the City of Cleveland, Ohio) a 186 unit low income housing project to TFG and allowed TFG to perform an Historical Significant Rehabilitation to turn the property into the best (with the highest rent) multifamily property in the City. (2005)
- HUD sold (through the City of Winston-Salem, N.C.) a 150 unit low income housing project to TFG and provided a $3.3m grant for the property’s substantial rehabilitation into affordable housing. The City of Winston-Salem provided a $250,000 grant and a $500,000 soft second mortgage. (2006)
- Raymond James Bank loaned a TFG controlled entity $21m for the acquisition and rehabilitation of a 232 room hotel acquired from Starwood. (2007)
- CitiBank loaned a TFG controlled entity $4.8m for the acquisition and rehabilitation of a 142 unit apartment complex. (2008)
- HUD sold (through the City of Cleveland, Ohio) a 195 unit low income housing project to TFG and provided a $5m grant for the property’s substantial rehabilitation. (2009)
- Freddie Mac provided $4.4m of credit enhancement to a new property in Winston Salem, N.C. (2011)
- CitiBank loaned Federation Gulfstream-Housing Inc., $6.7m in the HUD Section 202 refinancing transaction, in which TFG served as Developer. (2012)
- PNC Bank loaned a TFG controlled entity $11m (as part of a larger transaction) for the acquisition and rehabilitation of a high end rental property. (2012)
- PNC Bank loaned a TFG controlled entity $1.2m (as part of a larger transaction that included a $3.1m federal grant) for the new construction of a multi-family property. (2011)
- Key Bank invested as a limited partner $4.3 in two separate transactions to TFG controlled entities. (2009/2012)
- HUD has issued Mortgage Insurance in excess of $85m to TFG controlled entities. The last financing closed on February 12, 2013.
- The Huntington National Bank loaned a TFG controlled entity $33m for the construction of Innova Phase One. (2014)
- NY Housing Development Corporation loaned PH Housing Development Fund Corporation $8.8m in the HUD Section 202 refinancing transaction, in which TFG served as Developer. (2015)