NEW YORK CITY—Marking a foray into the local market, Forum Partners has acquired a strategic interest in the Dermot Co., a real estate investment, development and management company based here.
Forum's initial investment includes an interest in the company and the purchase of interests in four NYC assets developed by Dermot. Forum is making the investment alongside the senior management team of the company. While terms were not disclosed, through a series of new developments, recapitalizations, and value-add acquisitions, Dermot expects to deploy in excess of $750 million over the next 18 months.
Dermot principal Steve Benjamin will lead the company as president and CEO as founder William Dickey has retired. Forum managing director George Ahl will have primary responsibility on behalf of Forum as the two companies work together to create scale and deal flow. Watch GlobeSt.com for an UPDATE on this story.
Since its formation in 1991, Dermot has remained focused on all multifamily sector investment and operations, including ground-up development, asset repositioning and the structuring of innovative financing transactions. To date, Dermot has owned or developed in excess of $2.5 billion in 24 properties.
“We've known Steve for many years and are very pleased to invest in the Dermot Co., which has created an impressive platform in New York City” says Russell Platt, Forum's CEO. “Coupling Dermot's strong, 20 year track record of value-add investment, development and asset management with Forum's real estate expertise and access to long-term capital is a powerful combination. We are excited to work with Steve and his team to grow Dermot as we create scale and deal flow.”
He continues, “After more than a decade of investing in Europe and Asia, we have expanded our focus to the US. This investment gives us a strong position in one of the most desirable US markets alongside a highly regarded firm. Forum prides itself on the formation of well aligned partnerships at the entity level, and we look forward to further US-based investments as we target opportunities to create value.”
Adds Benjamin, “Forum's investment in Dermot is a tremendous endorsement of our model and our team. In choosing a partner for the future, the character of the team, their understanding of our business and their long-term focus were of utmost importance. We look forward to working together as we continue to grow our New York City-based strategy.
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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.
