How to make a home renovation business look good
A home renovation company is getting more attention than ever with a proposed $2.3 billion deal to sell more than 4,000 houses in New York.
The deal, with plans to build new houses and renovate existing ones, is among the biggest home remodeling deals announced in New Yorker history.
The company, Real Estate Investment Trust (REIT), said Monday that it plans to sell 4,038 homes, or a 20 percent increase over last year.
The new sale is expected to bring the total number of homes sold in the state by REIT to more than 5,000, said Mark O’Neill, the company’s president and chief executive officer.
It’s the largest single-year deal in New Yorks history, and the biggest real estate sale in the nation.
REIT sold the first 4,852 homes in the borough of Queens in November 2014.
Last year, REIT bought a 1,811-square-foot house in Brooklyn, a luxury property in which the company will renovate, with the help of a $25 million loan from the State of New York, according to the agreement.
The state is investing more than $100 million to expand the state’s real estate market, O’Neil said.
It’s a big effort, and we are committed to it.”REIT will pay for up to 80 percent of the new homes, O`Neill said.
The company said it would lease the homes to developers and local governments.
The buyers will also own a minority interest in the company.REIT expects to spend $300 million on the new projects, which include nearly 400 homes in Manhattan, according the deal.
The sale is in addition to REIT’s $2 billion purchase of the historic Lower East Side apartment building on Manhattan’s Lower East side in 2014.
In a statement, O\’Neill said REIT has a strong track record of producing successful and affordable residential developments.
It will also be an important part of New Yorker’s real property boom.”
This sale will further demonstrate our commitment to making our neighborhoods more affordable for families and small businesses, and to working together to provide them with affordable and quality real estate,” he said.REIG will be able to make more than 100 homes a year for the next three years, O´Neill said, adding that the company expects to add at least 40 new homes each year.
ReIT has built several projects in New Jersey, including a $4.6 billion apartment complex in Paramus and the former New Jersey Casino.
The New York City-based company will invest in new houses in the city, according O’Connor, including at least 10 new homes for low-income families.
The total value of the sale is likely to exceed $1 billion, he said, estimating that more than half of the $2 million in capital expenditures would be needed for renovations.
The other half would be for capital upgrades to existing houses.