FORT WASHINGTON, Pa., Dec. 15, 2020 (GLOBE NEWSWIRE) – Toll Brothers, Inc. (NYSE: TOL) (www.TollBrothers.com) today announced the completion of a $ 160 million home loan for a newly formed joint Venture between the rental subsidiary Toll Brothers Apartment Living® and GSLM Capital Partners, a venture of L + M Development Partners and the Goldman Sachs Urban Investment Group. The funding will be used to develop Phase 1 of 6.7 acre property in the heart of Washington, DC, located at the intersection of NoMa, Mount Vernon Triangle and Shaw – three rapidly growing and vibrant neighborhoods northwest of Union Station . Phase 1 will bring 561 units, approximately 20% of which are affordable, one acre of public space and nearly 50,000 square feet of housing.
Citi Community Capital is providing a $ 160 million home loan funded by $ 23 million tax-exempt bonds issued by the Washington DC Housing Finance Agency (DCHFA) and a taxable one Home loan of $ 137 million. In addition, in its role as Optigo lender, Citi has agreed a $ 160 million forward commitment to permanent funding for Freddie Mac. Goldman Sachs will buy low income tax credits of approximately $ 15.7 million, legally generated, in addition to its land loan financing and equity stake. The financing was secured by Toll Brothers and L + M Development Partners. Toll Brothers Apartment Living and L + M will oversee the development, management and marketing of the project.
The property, bounded by First Place, M, First and L, NW streets, was acquired by the Sursum Corda cooperative in 2018. Under the agreement, members of the Sursum Corda cooperative have the right to return to up to 127 units included in the development. Phase 1 of the development was unanimously approved by the Zoning Commission last year and is being built in the southern part of the site. While the phase 1 tax-exempt bond and low income loans support 118 units limited to at or below 80% of the area median income for different incomes, the overall development will be built in multiple phases that include up to 1,100 homes 199 will be affordable if it does is fully completed.
The two buildings in phase 1 offer a mixture of studio, one, two, three and four-room floor plans. The southwest building in Phase 1 will consist of 216 apartment buildings and provide health and wellness facilities for the community, including a cardio and weight lifting gym, yoga and bike rooms, an outdoor yoga deck, locker rooms and a pet spa. There will also be a children's playroom, communal lounge, and pool on the second floor with cabanas and seating overlooking the communal park.
The southeastern building will comprise 345 condos and community-run amenities including a coffee bar, large common room, maker area, game room, full service kitchen and dining room, greenhouse with garden stations and indoor green spaces, and one Roof terrace with indoor and outdoor areas.
Mount Airy in Action, a subsidiary of neighboring Mount Airy Baptist Church, will participate in the joint venture and be a co-applicant in the proposed unit development. Mount Airy is one of the most sustainable institutions in the region and will help promote affordable housing development.
Fred Cooper, Senior Vice President of Finance and Investor Relations at Toll Brothers, stated, “We are very excited about this funding, which will allow us to implement a much anticipated redevelopment plan that will create new homes, including a significant amount of necessary affordable housing. We have put together a very strong team. We have enjoyed working with L + M, Citi and Freddie Mac in the past and are excited to also work with Goldman Sachs' Urban Investment Group, Mount Airy Baptist Church, City Guides and the Washington, DC Housing Finance Agency Transformation Project. "
Charles Elliott, President of Toll Brothers Apartment Living said, “Toll Brothers Apartment Living has developed over 2,300 units in the region and over 1,100 in the district. As we continue to build our pipeline in this vibrant market, we strive to bring the same enhanced customer experience and quality for which we are known across the country to each of our communities. "
Ron Moelis, CEO and Founding Partner of L + M Development Partners, said, “We are proud to expand our work to Washington DC to revitalize this area of the city through mixed income housing and a community park. Providing quality, affordable housing to members of the Sursum Corda Cooperative is particularly important to us and we look forward to welcoming them and their neighbors to their new homes in 2022. Thanks to the DC Housing Finance Agency and all of our partners for reaching this important milestone in the rehabilitation of the region. "
Margaret Anadu, Managing Director of Goldman Sachs and Head of Urban Investment Group, said: "The reactivation of this location and the creation of much-needed mixed-income housing, especially for former residents of Sursum Corda, is an example of the progress that is possible when community, public and private sector leaders work towards a common goal. Mixed income living, the new park, the more pedestrian-friendly streets, and the improvement in infrastructure will all give residents a somewhat broader path to greater opportunities and socio-economic mobility. "
Rev. L. B. West, D. R. S., of Mount Airy Baptist Church, said: “For 127 years, Mount Airy Baptist Church has been a pillar of strength as an institution of moral quality for residents of Northwest One and the surrounding communities. It has been a real pleasure to help all constituents, and now it is incomparably rich in further refurbishing this wonderful community for one of our affiliates, Mount Airy in Action 2020. MAIA2020 is a 501-c-3 non-profit organization that is solely responsible for affordable housing. With a grateful heart, we express our joy in working with the Toll Brothers / L + M partnership to develop affordable living space for future members of Northwest One. "
Melissa Lockett, vice president of Citi Community Capital, said, “Citi has been providing local financial services to Washington, DC locations since the early 1900s. The closure of Sursum Corda marks the continuation of Citi's commitment to revitalizing our nation's capital and funding high-quality, much-needed housing that greatly benefits the community. "
Christopher E. Donald, Interim Executive Director of the Washington DC Housing Finance Agency, said, “DCHFA's investment in the redevelopment of Sursum Corda reflects the agency's mission and mandate from the Bowser administration to provide affordable housing in all eight boroughs in the district including the thriving neighborhood this development will be in. This is evidenced by the right of former residents to return and the reservation of affordable units within the development. "
Peter Lillestolen, Freddie Mac's Director and Co-Head of Targeted Affordable Housing Retail, said, “As a result of these efforts, more than 100 residents of the district will have an affordable place to call home. Freddie Mac is proud to provide financial security for this unique turnaround through a forward commitment of $ 160 million. "
The construction work for phase 1 has begun, in which the first residents are expected to be welcome in 2022. Please visit TollBrothersApartmentLiving.com for future updates and community information.
ABOUT TOLL BROTHERS
Toll Brothers, Inc., a FORTUNE 500 company, is the nation's leading manufacturer of luxury real estate. The company was founded over fifty years ago in 1967 and converted into a public company in 1986. The common stock is listed on the New York Stock Exchange under the symbol "TOL". The company serves first-time, emerging, vacant, active adults, affordable luxury and second home buyers, and urban and suburban tenants. It operates in 24 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee , Texas, Utah, Virginia and Washington, and the District of Columbia.
Toll Brothers build a range of luxury single family homes, single family homes, planned resort style golf courses, and urban low, medium and high rise communities, primarily on the land they develop and improve. The company acquires and develops rental apartments and commercial properties through Toll Brothers Apartment Living, Toll Brothers Campus Living and the affiliated Toll Brothers Realty Trust, and develops low, medium and high-rise urban condominiums for sale through Toll Brothers City. The company operates its own architecture, engineering, mortgage, property, land development and land sales, golf course development and management, and landscaping companies. Toll Brothers operates its own alarm monitoring company through TBI Smart Home Solutions, a full home technology division. In addition to security surveillance, TBI Smart Home Solutions offers homeowners a wide range of low voltage options that help buyers maximize the potential of the technology in their new home. The company also operates its own wood distribution, assembly of house components and manufacturing plants. Through the Gibraltar Real Estate Capital joint venture, the company offers builders and property developers land banking, non-recourse debt and equity.
In 2020, Toll Brothers was named the World's Most Admired Housing Company for the sixth year in a row in Fortune Magazine's Most Admired Companies in the World® survey. Toll Brothers has received numerous other awards including Builder of the Year from both Professional Builder Magazine and Builder Magazine, the first two-time recipient of Builder Magazine. The company sponsors the Toll Brothers Metropolitan Opera international radio network, which brings operas to neighborhoods around the world. More information is available at www.TollBrothers.com.
ABOUT TOLL BROTHERS APARTMENT LIVING®
Toll Brothers Apartment Living is the residential development division of Toll Brothers, Inc. (NYSE: TOL). Toll Brothers Apartment Living offers luxury home buyers across the country the same quality, value, and service as upscale rental communities in select markets including Atlanta, Boston, Dallas, Los Angeles, New York, Philadelphia, Phoenix, and Washington, DC. Toll Brothers Apartment Living was voted the eleventh largest apartment developer in the US by the National Multi-Family Housing Council in 2020. The company has developed more than 6,200 units, manages more than 4,000 units and controls a national pipeline of more than 16,700 units. Toll Brothers Apartment Living's shared flats combine the energy of vibrant locations with unparalleled amenities, resident services, design and the expertise of the nation's leading luxury real estate manufacturer. More information is available at TollBrothersApartmentLiving.com
ABOUT L + M DEVELOPMENT PARTNERS
Since its inception in 1984, L + M Development Partners has been an innovator in developing high quality, affordable housing with mixed income and market prices, as well as improving the neighborhoods in which the company operates. As a full-service company, L + M works from conception to completion and takes care of development, investment, construction and management with industry-leading creativity. L + M is responsible for developing and investing over $ 9 billion and has acquired, built or maintained nearly 30,000 high quality residential units in New York’s Tristate, West Coase and Gulf Coast regions. Community leaders, government officials and institutional investors turn to L + M because of their proven record of excellence. L + M is a double bottom line company whose success is measured not only by financial returns but also by positive impact. L + M is proud of its longstanding partnership with the communities it serves. This is demonstrated through an annual scholarship fund, staff development programs, after-school programs, and extensive support for local nonprofits. L + M brings a superior level of commitment to its investments in developments and equally important to its investments in people.
ABOUT GOLDMAN SACHS URBAN INVESTMENT GROUP
Established in 2001, Urban Investment Group ("UIG") is a business unit of Goldman Sachs ("GS"). Through its comprehensive community development platform, UIG leverages capital by making investments and loans that benefit underserved people and places. Since its inception, UIG has allocated more than $ 9.6 billion to enable the creation and maintenance of over 40,300 housing units, most of which are affordable for low, middle and middle income families, and over 2,800,000 square feet Community area Over 11,200,000 square meters of commercial, retail and industrial space.
ABOUT MOUNT AIRY BAPTIST CHURCH
Mount Airy Baptist Church is a missionary Baptist church with a rich history of community service designed to help meet the spiritual and social challenges faced by members of the church and community. We are active in the church through a variety of ministry activities. We are in the heart of Washington, DC, just one mile north of the United States Capitol.
ABOUT CITI COMMUNITY CAPITAL
Citi Community Capital (CCC) is a leading financial partner with nationally recognized expertise in financing all types of affordable housing and community reinvestment projects. In 2019, CCC raised over $ 6 billion in construction and permanent loans to finance 37,840 renovated or new affordable housing units. CCC's origination, structuring, asset and risk management staff across the country offer creative financing solutions tailored to their clients' needs. CCC supports financial institutions, real estate developers, national brokers and nonprofits in achieving their goals through a broad, integrated platform with debt and equity offerings. More information is available at: http://www.citicommunitycapital.com.
ABOUT WASHINGTON D.C. HOUSING FINANCE AGENCY
The District of Columbia Housing Finance Agency is an S&P A + rated issuer who has been based in Washington, DC for more than 40 years. The agency's mission is to advance the District of Columbia's housing priorities. The agency invests in affordable housing and neighborhood development that will provide ways for DC residents to change their lives. We accomplish our mission by providing the most efficient and effective sources of capital in the market to finance rental housing and create home ownership opportunities.
ABOUT FREDDIE MAC
Freddie Mac enables millions of home buyers and renters across the country to provide mortgage capital to lenders. As the leading multi-family home provider in the country, more than 95% of Freddie Mac-funded rental units are affordable for low- to middle-income families who earn up to 120% of the area's median income.
Toll Brothers forward-looking statements
This press release contains or may contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements can be identified by the fact that they do not relate to purely historical or factual matters and generally discuss or relate to future events. These statements contain words such as "anticipate", "estimate", "expect", "project", "intend", "plan", "believe", "may", "may", "could", "could" "should" "," Will "and other words or phrases of similar meaning. Such statements may include, but are not limited to, information about market conditions. Demand for our homes; expected operating results; Home deliveries; financial resources and condition; Changes in sales; Changes in profitability; Changes to the margins; Changes in accounting; Cost of sales; Sales and general administration costs; Interest expenses; Inventory depreciation; Guarantee claims and claims for defects; tax benefits not covered; expected tax refund; Sales speed and prices; Effects of homebuyer cancellations; Growth and expansion; Joint ventures in which we are involved; expected results of our investments in unconsolidated companies; the ability to purchase land and pursue real estate opportunities; the ability to obtain permits and open new communities; the ability to sell homes and real estate; the ability to deliver homes from the backlog; the ability to launch or complete projects through joint ventures; the ability to secure materials and subcontractors; the ability to produce the liquidity and capital needed to expand and capitalize on opportunities; and litigation, investigations and claims.
Some or all of the forward-looking statements in our reports or public statements made by us are not guarantees of future performance and may prove to be inaccurate. This could be due to incorrect assumptions or to known or unknown risks and uncertainties. Many factors mentioned in our reports or public statements, such as market conditions, government regulations, and the competitive landscape, will be important in determining our future performance. As a result, actual results could differ materially from those anticipated from our forward-looking statements.
Factors that could cause actual results to differ from those expressed or implied in our forward-looking statements include, but are not limited to: the economic and housing effects of the COVID-19 pandemic; Fluctuations in demand in the housing industry; adverse changes in economic conditions in markets in which we do our business and in which potential buyers of our homes live; Increase in the number of cancellations of existing sales contracts; the competitive environment in which we operate; Changes in interest rates or our credit ratings; the availability of capital; Uncertainties in the capital and securities markets; the ability of customers to obtain funding to buy homes; the availability and cost of land for future growth; the ability of participants in various joint ventures to meet their obligations; Effects of state legislation and regulation; Effects of increased taxes or government fees; Weather conditions; Availability and cost of labor and building and building materials; the cost of raw materials; the result of various product liability claims, legal disputes and warranty claims; the impact of losing key executives; Changes in tax laws and their interpretation; Construction delays; and the seasonal nature of our business. For a more complete description of these factors, see the information under the headings “Risk Factors” and “Management Discussion and Analysis of Financial Condition and Results of Operations” in our most recent periodic reports on Forms 10-K and 10-Q with the SEC.
From time to time, forward-looking statements may also be included in our periodic reports on Form 10-K, 10-Q, and 8-K, in press releases, in presentations, on our website, and in other publicly available materials.
This discussion is provided in accordance with the provisions of the Private Securities Litigation Reform Act of 1995 and all of our forward-looking statements are expressly qualified in their entirety by the cautionary statements contained or referenced in this section.
Forward-looking statements only apply at the time they are made. We assume no obligation to publicly update any forward-looking statements as a result of new information, future events or for any other reason.
Frederick N. Cooper (215) 938-8312
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