NEW YORK CITY—The advantages of building luxury housing can be obvious. But many developers can't envision the upside of creating affordable and middle-income housing. That's where Mark Stagg comes in.
The CEO and founder of Stagg Group sees numerous benefits of building such developments and much of the firm's efforts are concentrated in the Bronx. He spoke to GlobeSt.com about his perspective in this EXCLUSIVE interview.
GlobeSt.com: Stagg Group has been making property acquisitions in the Bronx. What's your view of the market right now?
Mark Stagg: We've been a builder there for the last 15 years. We're really in ramp up mode. It's close to the highways, a half-hour from LaGuardia Airport and close to Midtown Manhattan. Middle income, or workforce housing, hasn't been talked about but that's our market. We believe in low income housing too but where do the workers with incomes from $40,000 to 60,000 a yearlive?Those transit workers, nurses and nurses aids, police officers, firefighters and the like are priced out of Manhattan and Brooklyn.
I don't believe an income level should dictate the type of residence someone lives in. It should be a quality home that people feel good about. That's what builds communities; it starts with one building at a time.
GlobeSt.com: What does your portfolio look like today?
Stagg: We have 1500 units under management—700 in the ground and 1,100 in the pipeline. One project in particular, 2985 Webster Ave.—in the Bedford Park area—is going to be an 80/20 building and the interest we're seeing has been tremendous, we've been surprised.
GlobeSt.com: Your company has developed more than 2,800 residential units in the Bronx, almost all affordable. What is your company philosophy when it comes to building and managing affordable housing?
Stagg: Let's give people a nice place to live and see what happens from there. Our appetite for affordable housing is growing.
GlobeSt.com: Affordable housing has been a focal point of Mayor Bill de Blasio. How do you see Stagg Group fitting into the mayor's agenda?
Stagg: We're ahead of the curve because we've been doing it already. We've developed 1,000s of units and going forward we're going to do it on a larger scale. We fit right into the agenda and we see the opportunity.
GlobeSt.com: Former Bronx borough president and HUD official Adolfo Carrión, recently joined Stagg Group. What value do you see him adding to the company?
Stagg: We share the same core philosophy, that it's about doing the right thing and everything will take care of itself. Housing is a feel good business—there's nothing like taking a run down site and bringing families there.
GlobeSt.com: What's next for Stagg Group—will there be a transition to focus on more market rate projects?
Stagg: Since Adolfo came on board, there's a spotlight on us and people want us to build for them. Churches and not-for-profit organizations have been contacting us and we're going to pursue that avenue and we're partnering with other entities to fulfill the density need. We're going to also work in partnership with the public sector.
We expect to be a big player in transit-oriented communities for the next five to 10 years. We're here for the long term.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
