08/04/2014 | By Sarah Borchersen-Keto
Private REIT Community Development Trust (CDT) recently passed the $1 billion milestone in investment in affordable housing and is ready to invest more “in just about any market in the country,” according to Joseph Reilly, the company’s president and CEO.
Founded in 1998, New York City-based CDT invests in affordable housing projects. It also originates and purchases long-term mortgages tied to affordable housing. The company has loans and investments in 41 states.
“We’re feeling pretty good about where we are right now,” Reilly said. “The portfolios are performing well, and we were successful in raising capital last year, so we’re ready to invest more.”
Reilly said he anticipates that CDT will invest a minimum of several hundred million dollars in total during the next couple of years. “We’re truly national and are always looking for more opportunities around the country,” he added.
However, Reilly said the competition generated by the high level of interest in the sector and available capital creates challenges for putting together deals in the current environment.
Currently, the size of CDT’s debt and equity portfolios are about even, but Reilly emphasizes that this could change depending on where opportunities arise in the future.
California and New York Transactions Push CDT Over $1 Billion Investment Threshold
Two recent transactions pushed CDT over the $1 billion investment mark. CDT purchased a $40 million loan portfolio from California Community Reinvestment Corporation (CCRC), and added two New York-based forward loan commitments, totaling $14.5 million, to its debt program.
CDT is continuing to grow its presence in New York, Reilly said.
CDT’s largest investment to date is Ocean Towers, a 360-unit property in New York’s Coney Island area. Ocean Towers is also its most complex undertaking, given the amount of rehabilitation that needed to be undertaken, according to Reilly. He explained that CDT spent about $35,000 per unit on rehab, “which is a pretty big number for us.”
Reilly said he believes CDT has been able to heighten awareness of its capacity in the New York area, which bodes well for the future.
“We’re seeing interest from more parties, and we expect that there’ll be more opportunities over the next few months,” he said.