The alliance partners, TimesSquare Real Estate Investors, which is headquartered in Hartford, CT. and the Bozzuto Group, have agreed to co-invest up to $220 million in the development and or rehabilitation of multifamily housing. John M. Hurley, portfolio manager for the Apartment Alliance Separate Account, says that the fund's prime target area is the Washington D.C. area. It will also consider projects in the Baltimore-Philadelphia marketplace.
TimesSquare Real Estate Investors, which will serve as investment advisor and manager to the alliance fund, is a division of TimesSquare Capital Management, Inc., which manages approximately $44 billion in assets, including about $2 billion in equity real estate assets for pension and retirement plans and other institutional investors. TimesSquare Capital Management is a subsidiary of CIGNA Corp. The Bozzuto Group will provide project development and property management services to the fund.
The fund's first project will be the Montgomery at Wheaton Metro, a multifamily complex in Wheaton, MD. The $33-million development will feature 213 units of housing in two-, four- and five-story buildings. The project will include a number of live-work units as well. Construction is set to begin on the development in early 2003. The project should be completed by the third quarter of 2004. The complex is located 200 feet from the Wheaton Metro train station and two miles north of the Capitol Beltway.
"This project provides the New York State Teachers' Retirement System with an opportunity to invest in a region where population growth continues to build and the supply of new apartment sites is highly restricted," Hurley says. Company officials add the apartment complex will be located near public transportation and major roadways and is expected to attract young professionals who commute to downtown Washington, DC and the I-270 Rockville Pike biotech employment corridor.
"One of the attractions of this particular project is that there have been no new multifamily developments in the locale for more than a decade," relates Terri Pandolfi, a real estate officer of the New York State Teachers' Retirement System, which is one of the nation's 10 largest public retirement systems with more than $73 billion in assets.
Hurley says that in the next 12 months the Apartment Alliance Separate Account hopes to identify approximately 30 development projects that it could proceed with. At present, the alliance is looking to engage in about 70% new development projects and 30% rehabilitation ventures.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
