Acquisitions & Investments

Our acquisitions and investments team maintains a steady, profitable pipeline of market rate, historic rehabilitation, and affordable housing transactions.

With a strong focus on preserving and renewing affordability, Beacon’s acquisitions and investments team has proven that we can successfully navigate complex regulatory programs and execute transactions that are attractive for all parties involved. We have a demonstrated capacity to arrange financing, close on financing, deliver projected cash flows, and successfully exit in cases where the transaction calls for a capital event.

If you have a debt or equity investment opportunity that you believe fit Beacon’s profile, please contact info@beaconCommunitiesllc.com

Debt and Equity. Each of our projects is an opportunity to work with lenders, investors, and joint venture partners. We work with:

  • Tax Credit Investors. Tax credit developments and investments succeed through the collaborative participation of state, federal, historic, and low-income housing tax credit investors and purchasers.
  • Equity Investors. Working with both individual and institutional investors, Beacon invests in multi-family properties representing thousands of apartments.
  • Lenders. Beacon has strong relationships with public and private providers of debt financing who can provide all varieties of bridge, construction, mezzanine, and permanent loans.
  • Existing Owners. Beacon has completed many transactions that demonstrate an ability to work effectively with existing property owners or general partners on sales, refinancings, or other joint ventures that accomplish a seller’s goals.
View our case studies
  • Beacon Communities Fund I Limited Partnership

    Profiting from experience and insight. Sharing in the rewards.

    Location

    New England and Mid-Atlantic States

    Profile

    17 investments that include market-rate, mixed-income, and affordable housing communities

    Financing

    $20M fund leverages Beacon's knowledge and approach while providing LPs with equitable terms and value.

    Background
    In 2007 Beacon Communities launched a $20M fund to purchase multi-family properties along the East Coast, creating Beacon Communities Fund I Limited Partnership (“BC Fund I”) a thriving investment fund that has served as a model for future opportunities. Leveraging its own capital and equity from joint-venture partners, BC Fund I invested a total of $57 million in 17 different investments.

    Beacon Communities’ expertise in the various regulatory programs affecting multi-family properties differentiated BC Fund I as Beacon evaluated properties and structured investments to bring investors long-term positive results. Beacon Communities’ 30-year track record in developing and managing properties proved an invaluable tool in creating investor value and minimizing overall risks. Over the course of two years, BC Fund I acquired interests in approximately 4,000 units. Investments ranged from outright property purchases to participating in limited partnership interests and debt instruments.

    Process        
    Every investment made by BC Fund I involved an individually crafted business plan designed to optimize the value of each property within its particular market. Strategies included value-add repositioning, new construction to add value, proactive property management, and modifications with respect to the regulatory programs and subsidies available to certain properties.

    Beacon Communities serves as the fund manager for the BC Fund I but participates under the same terms as all other limited partners. By aligning interests, this equitable approach incentivizes Beacon’s management team to provide solid returns and reassures Beacon’s investors that they are receiving the best possible value, service, and attention.

    Results
    BC Fund I was fully invested by 2009. Several of the Fund’s investments have since matured, and investors have received multiple distributions that have met or exceed the originally projected returns. BC Fund I is on track for complete disposition by 2017, when the Fund is set to mature. To date, all investors have received a return of their original investment, a full payment of all Preferred Return, and we continue to liquidate investments to enhance those returns.

    1

    Beacon Communities Fund I Limited Partnership

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  • Edmands House Apartments

    Preserving and improving existing affordable housing to last for future decades

    Location

    Framingham, MA

    Profile

    Affordable rental, preservation, moderate rehabilitation

    Unit Count

    190 units in two six-story buildings

    Financing

    LIHTC, Citibank debt, state soft debt, Town of Framingham soft debt

    Completion

    2014

    With outdated amenities and systems, Edmands House Apartments, an affordable housing development built in 1973, had not kept pace with the surrounding neighborhood of Nobscot, a picturesque neighborhood in Framingham, Massachusetts.

    Beacon was able to acquire the property and refinance it in a major transaction that preserved long-term affordability and generated funds for much-needed improvements.

    Edmands House has been transformed. A significant amount of underutilized common space was revitalized, and now the development’s amenities include a fitness center, computer learning center, community room, and new walks and landscaping. Safety improvements include security cameras, keycard access systems, and LED lighting in the courtyard, covered plazas, and common areas. The property’s hallways, common areas, and management offices have been completely updated. All units were upgraded with energy-efficient appliances. Beacon installed a co-generation unit and replaced the previous electric heat and hot water systems with gas-fired systems consisting of high efficiency boilers and hydronic baseboards. Common areas are climate controlled by programmed thermostats.

    Through the process of preserving and extending housing affordability, Beacon actually increased the number of affordable apartments at Edmands House. Accessibility improvements were implemented throughout the site, and 10 apartments were renovated to be fully accessible for residents with mobility impairments.

    2

    Edmands House Apartments

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  • Dorado Apartments

    Affordable housing preserved in one of the country’s most competitive real estate markets

    Location

    Yonkers, NY

    Profile

    Affordable rental, preservation, moderate rehabilitation

    Unit Count

    189 units in 17-story high-rise

    Financing

    RAD, LIHTC, New York State Housing Finance Agency debt

    Completion

    Anticipated 2016

    From the higher floors of Dorado Apartments, residents are treated to sweeping views of the Hudson River. The train to New York City is steps away, and city conveniences and amenities are nearby. The aging affordable housing property was thus a tempting target for conversion to market, especially because its subsidy programs were expiring.

    Beacon Communities worked with state and local officials as well as the building’s owner, investors, lenders, and residents to formulate a strategy for saving and restoring Dorado Apartments. The first step was working with Municipal Housing Authority of the City of Yonkers to use HUD’s Rental Assistance Demonstration program to replace the expiring subsidies and put Dorado on track towards long-term affordability.

    After closing on the complex financing package required, Beacon has undertaken significant improvements to the building, including converting the electric heat and hot water system to gas, adding new security and access systems, constructing a contemporary management office, creating fully accessible apartments for residents with mobility impairments, and renovating all the apartments. The property meets and exceeds the green building requirements of NYSERDA’s Multifamily Performance Program.

    Beacon’s management practices and demonstrated financial commitment to the building have rebuilt trust with the residents and helped encourage the flourishing of a new sense of community.

    3

    Dorado Apartments

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