JEN Partners to Acquire MMA Financial's Tax Credit Equity Business
29 June 2009 - 10:30PM
PR Newswire (US)
NEW YORK, June 29 /PRNewswire/ -- JEN Partners, a New York-based
private equity real estate firm, today announced that it has
entered into a definitive agreement to acquire substantially all of
the Tax Credit Equity business of MMA Financial, an operating
subsidiary of Municipal Mortgage & Equity, LLC (MuniMae, OTC:
MMAB). Coincident with the transaction, industry veteran Kenneth J.
Cutillo will be named Chief Executive Officer of the company. MMA
Financial, based in Boston, Massachusetts, is a national leader in
equity financing for multifamily apartment properties. The company
aggregates, syndicates and manages portfolios of Federal and State
Low Income Housing Tax Credits (LIHTC). MMA Financial has $8.3
billion of equity under management and manages approximately 1,800
multifamily apartment properties containing about 180,000 units in
48 states, the District of Columbia and Puerto Rico. It is the
nation's largest apartment owner according to the National Multi
Housing Council's 2009 Ranking. The transaction, valued at
approximately $31 million, will be financed by equity contributed
by JEN Partners and Real Estate Capital Partners (RECP), a New
York-based real estate investment firm. Upon completion of the
acquisition, MMA Financial will become a private company,
wholly-owned by JEN Partners and RECP and will be renamed Boston
Financial Investment Management (BFIM). The corporate headquarters
of the company will remain in Boston. "JEN Partners believes in
building businesses for the long term, and we are delighted to be
able to support the next stage of the company's growth and
development," said Allen J. Anderson, a JEN Partners Managing
Director. "BFIM will continue to be one of the country's leading
LIHTC investment management firms, and will be well-positioned to
become a consolidator in the industry." Kenneth J. Cutillo added,
"I am excited to lead BFIM and its extremely talented team of
employees as the company transitions to its next phase. JEN
Partners has a successful track record of guiding businesses toward
long-term growth and profitability, and I look forward to working
with them." The transaction is expected to close in the second half
of 2009, subject to customary closing conditions. JEN Partners
received legal advice from Willkie Farr & Gallagher LLP.
MuniMae was advised by Lazard and Clifford Chance. About JEN
Partners JEN Partners is a leading private equity real estate firm
based in New York. Established in 2005 by Reuben S. Leibowitz, JEN
Partners invests in real estate operating companies with the long
term goal of building durable businesses in partnership with strong
management teams. JEN Partners' executives have more than 50 years
of real estate investing experience and are responsible for
establishing and growing companies such as MJ Brock (later acquired
by Ryland), Pacific Greystone (acquired by Lennar), Chelsea
Property (acquired by Simon Property), Meridian Industrial Trust
(acquired by ProLogis) and Grubb & Ellis. For more information,
please visit http://www.jenpartners.com/. DATASOURCE: JEN Partners
CONTACT: Julie Johnson Staples, , or Jennifer Powers, ,
+1-212-858-7600, both for JEN Partners Web Site:
http://www.jenpartners.com/
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