A company spokesperson tells GlobeSt.com that CharterMac will continue to be headquartered in at 625 Madison Ave. and that no employees are being let go, as the CharterMac and Related business lines are complementary, but do not duplicate their efforts.
According to company officials, the firm has more than tripled its market capitalization in a five-year period to more than $2 billion, and delivering to its shareholders an average annual total return of over 22% on a tax-adjusted basis. The merger, first announced in mid December of last year, provides the firm with even more opportunities to be the leading multifamily finance company in the US, according to company officials.
"This transaction has created one of the strongest multifamily finance companies in the nation, with over $19 billion of real estate assets under management and 220 employees in 22 offices throughout the country," says Stuart J. Boesky, CEO of CharterMac. "The addition of RCC's business lines to CharterMac's existing platform will further diversify our revenue sources, while also enabling the company to enhance and expand the products we offer our clients."
The company's grand plans include utilizing mortgage company PW Funding, which was purchased a year and a half ago to broaden CharterMac's scope. The company also created new securities called CRA Preferred Shares that allow banks to fulfill their community reinvestment requirements by investing in CharterMac stock. CharterMac also created an affiliate to provide mezzanine and bridge financing for apartment owners.
CharterMac's shareholders also approved the re-election of Stephen M. Ross, who serves as the chairman of CharterMac in a non-executive capacity, and Boesky to the board of trustees, for three-year terms expiring at the annual shareholder meeting in 2006. CharterMac is now governed by a 15-member board of trustees, eight of whom are independent and seven of whom are affiliated with the company. CharterMac's shareholders also approved a proposal to amend the company's trust agreement to clarify the leverage limitation. The remaining proposal to approve the expansion of the incentive share option plan has not yet received a majority vote. The polls remain open on the proposal.
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