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.
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.
TFG was the largest operator of condominiums in New England.
Development Transactions Since 1996
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.
1998
Fannie Mae provided $10m of credit enhancement to an Illinois Housing Development Authority issued bond.
1999
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.
2001 – 2004
Fannie Mae invested $35m in three of TFG projects.
2005
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.
2006
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.
2007
Raymond James Bank loaned a TFG controlled entity $21m for the acquisition and rehabilitation of a 232 room hotel acquired from Starwood.
2008
CitiBank loaned a TFG controlled entity $4.8m for the acquisition and rehabilitation of a 142 unit apartment complex.
2009
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.
2011
Freddie Mac provided $4.4m of credit enhancement to a new property in Winston Salem, N.C.
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.
2012
CitiBank loaned Federation Gulfstream-Housing Inc., $6.7m in the HUD Section 202 refinancing transaction, in which TFG served as Developer.
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.
2009/2012
Key Bank invested as a limited partner $4.3 in two separate transactions to TFG controlled entities.
HUD has issued Mortgage Insurance in excess of $85m to TFG controlled entities. The last financing closed on February 12, 2013.
2014
The Huntington National Bank loaned a TFG controlled entity $33m for the construction of Innova Phase One.
2015
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.