CPC, CDT, MonDev, Red Stone Equity and BDN Triboro preserve 1,036 affordable housing units

New York, NY According to The Community Preservation Corp. (CPC), The Community Development Trust (CDT), Monadnock Development (MonDev) Red Stone Equity Partners (Red Stone Equity) and the Black Developers Network Triboro, (BDN Triboro) they have completed the closing of a transaction to purchase and preserve a 13-building affordable housing portfolio totaling 1,036 units. The 13 buildings are located on 10 properties that were developed by the Dunn Development Corp., and are located in Manhattan, the Bronx, and Brooklyn. All of the apartments will remain affordable to low-income tenants.

The new ownership team is made up of mission-driven nonprofit and for-profit companies with decades of experience in affordable housing finance, construction, maintenance, and management. The group of preservation-focused organizations is dedicated to providing stable, responsible ownership to preserve the long-term affordability and quality of the housing for residents that call these developments home.

“CPC is proud to partner with a first-class group of companies that share our mission to preserve the long-term affordability and quality of these properties for the tenants and their families. We believe that when you invest in a building, you’re investing in the future of the people who live there and in the stability of their community,” said Rafael Cestero, CEO at CPC. ”Dunn Development set a high bar for socially responsible affordable and supportive housing development, and we are proud to have the opportunity to continue to deliver that high standard to the tenants at these buildings.”

“CDT is proud to partner with mission-aligned companies to preserve these irreplaceable buildings as high-quality affordable housing – for the long run,” said Joseph Reilly, president and CEO at CDT. “It is critical to CDT that we share a long-term commitment to our residents with our partners – and we could not be more confident that CPC, Monadnock Development, Red Stone Equity, and BDN meet that standard. Together, we will ensure that current and future residents in these buildings continue to be served by quality, affordable housing and support and stewardship from the entire ownership team.”

The portfolio is comprised of newly built, high-quality affordable apartments constructed between 2011 and 2017, with all of the rents being income restricted, primarily at levels affordable to tenants earning at or below 60% of area median income. Many of the buildings also have supportive housing components, combining affordable housing with on-site support services.  Two of the 10 properties were co-developed by Dunn Development Corp. and L+M Development Partners, Inc.

“Monadnock is proud to be a partner in this venture to continue the stewardship, investment and careful oversight of high-quality affordable housing created by Dunn Development.  We have the utmost respect for Martin Dunn and intend to build on the legacy he leaves with these 10 properties,” said Nick Lembo, chairman, MonDev.

“With the acquisition of the Dunn Portfolio, Red Stone Equity Partners and our employees saw a rare opportunity to achieve many important objectives. First, this transaction further deepens our commitment to preserving affordable housing in New York City. We have been working alongside Martin Dunn, Monadnock, CPC and CDT for many years in a variety of different capacities and this transaction provided another opportunity to partner with these high-quality companies and partners. Finally, RSEP has long been a champion of providing opportunities for BIPOC professionals to meaningfully participate in the affordable housing and community development industries. We’re excited that Kirk Goodrich and our partner, Richard Roberts, have meaningful ownership in this transaction and are playing a leadership role in this deal,” said Eric McClelland, chairman and CEO of Red Stone Equity.

“Richard Roberts and I are friends and have been colleagues and collaborators for well over a decade.  We are excited to joint venture in a way we haven’t before, with a team of outstanding companies.  We want to thank Martin Dunn for his leadership and for supporting the participation of a black-owned firm in the ownership structure of these properties,” said Kirk Goodrich, president MonDev, and managing member of BDN Triboro.

BDN Triboro, a 100% Black-owned entity and part of the new ownership group, is led by Kirk Goodrich and Richard Roberts, two recognized experts and innovators in the affordable housing industry.  This transaction is an extension of an existing, decade long relationship, but represents their first venture outside their roles as executives at Monadnock and Red Stone Equity, respectively. It is BDN Triboro’s intention to pursue additional affordable housing and community development opportunities in the future.

“We’re so pleased to have found the perfect long-term stewards for this portfolio of affordable and supportive housing buildings we care so much about. Monadnock, CPC, CDT, Redstone and BDN Triboro are the dream team.  And with the proceeds supporting social justice and human rights, this is a win many times over,” said Martin Dunn, founder and president, Dunn Development Corp.

In keeping with Dunn Development’s focus as a socially conscious, mission-forward company, a majority of the proceeds from the transaction will be used to capitalize a new charitable organization, the Blue Sky Social Justice Fund. The fund is being created to focus on supporting social justice and human rights efforts, including issues related to climate justice, LGTBQI+ rights, food justice, water and energy access, anti-slavery and Indigenous Peoples issues.  Additional proceeds from the transaction are being used to provide financing to the Black Developers Network.