Retirement Housing Foundation and Schochet Associates Acquire Essex Village and Kings Grant Apartments
Schochet and RHF finalize $36 million acquisition deal to preserve 265 affordable housing units in North Kingstown
Boston, Mass (March 15, 2013) – Retirement Housing Foundation and Schochet Associates today announced the acquisition of 265 apartments located in North Kingstown, Rhode Island. The $36 million acquisition will preserve affordable housing options for the community, and includes Essex Village Apartments, a 109 unit elderly development, and its neighbor, Kings Grant Apartments, a 156 unit family development.
"This transaction completes the Schochet Companies' three-year plan to acquire these assets, and convey them to RHF to ensure their preservation as affordable for the long term," said Richard Henken, Schochet's President. "We are thrilled that in so doing we were able to achieve tremendous value for our private equity partners and maintain affordable housing options for local communities in Rhode Island.”
Through the acquisition, Schochet Associates will be able to achieve annualized returns of nearly 21 percent over a holding period of less than 33 months.
As part of the acquisition, both developments – originally built in the mid to late 1970s – will undergo approximately $5 million in rehabilitation, including kitchen and bathroom updates and building renovations.
Both Essex Village and Kings Grant are subsidized by the United States Department of Housing and Urban Development (HUD) under the federal Section 8 and Section 236 programs. The developments sit next to each other on beautifully maintained grounds and offer multiple recreational programs, including a picnic area, tennis and basketball courts, and educational and social programs provided by the staff. The ample parking and community room add to the campus amenities.
About Retirement Housing Foundation
Retirement Housing Foundation (RHF), a non-profit organization which provides housing and services to elders, economically disadvantaged families, and disabled adults, served as the leader in this transaction. Federal Management Co., Inc., an affiliate of Schochet Associates, Inc., a full service real estate development and management company, will remain property manager and continue to act as developer in an advisory capacity. This is just one of the many successful collaborations between the two organizations.
About Schochet Associates, Inc.
Schochet Associates, Inc. is a full service real estate development and management company founded by Jay R. Schochet in 1973. Since that time, the company has developed, owned and/or managed in excess of 7,000 apartments and over 600,000 square feet of retail and commercial space throughout New England and on the West Coast. Today, Schochet Associates owns and/or manages over 4,500 apartments and 275,000 square feet of commercial space throughout New England. Headquartered in Boston, MA, the company has regional offices in Newport, RI, and Portland, ME, and employs over 160 people.