Patrick Plunkett
Patrick Plunkett, president of the newly formed Perez Housing Associates (PHA), an organization that is addressing the acute need for affordable housing, says PHA expects to close on properties within the next 30 to 45 days. PHA was recently launched by Jorge Perez and his son, Jon Paul Perez, of development firm The Related Group.
The new venture is dedicated to the acquisition, rehabilitation and long-term affordability of properties under Section 42 of the Low Income Housing Tax Credit Program. Plunkett says PHA is seeking properties in the Mid Atlantic, the Southeast, Texas, Ohio and Colorado.
"We have strategic locations we are looking at based on our acquisition criteria and where our deal hunt is," Plunkett says. "We are not looking in Los Angeles and that far west, just in certain markets."
Plunket says PHA has five projects in the works, but confidentiality agreements do not allow him to provide details until the deals close. He says PHA is actively pursuing acquisitions ranging from 100 to 1,000 units.
"This is an extremely competitive space now, but there are opportunities for the types of properties we would like to purchase, rehab and preserve," Plunkett says.
Challenges include complying with regulatory requirements and dealing with deferred maintenance. "We often have to inherit problems and things that need to be resolved," Plunkett says. "That requires having a plan in place ahead of time."
PHA will operate independently from The Related Group and target product types not addressed within their current portfolio. PHA is based in Miami. It seeks to acquire a minimum of 1,000 units per year, with the goal of renovating and repositioning the assets within 12-36 months.
"This is the first time that we have launched a dedicated effort specifically targeting section 42 properties," said Jon Paul Pérez, who is working closely with his father, Jorge Pérez, on this effort. "PHA was formed to respond to this critical sector and, ultimately, make a significant positive impact across the country."
Plunkett has more than 18 years of experience in the real estate development industry, including a seven-year span at The Related Companies, four of them as Director of Acquisitions for their affordable housing division. Plunkett has spearheaded the acquisition of over $1 billion in housing, and has extensive experience working with Federal, State and Local housing programs, including the FHA multifamily mortgage insurance programs, section 42, LIHTC, Section 8, 236 and 202 restructurings.
"Section 42 serves the country's most vulnerable families and individuals, and while there is existing stock available, much of it is aged, in need of rehabilitation and is at risk to go to market if we do not create long term affordability for these residents," Plunkett said. "The Pérez family has a long and illustrious history within this sector, and together we are driving real change where it's needed most."
Plunkett says one area of focus will be on senior housing, considering the demographics of its South Florida base. Also, PHA will not be involved in new construction,
"We don't put shovels in the ground," Plunkett says. "We acquire existing buildings and rehabilitate them."
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