The Omni Holding Company of Mo Vaughn is selling a 12,000 affordable housing portfolio to Nuveen.
Co-founded by the former Major League Baseball slugger, the firm is selling nearly its entire portfolio of affordable housing to asset managers — including large rental properties across the Bronx, Brooklyn and Queens. wall street journal. The portfolio also includes properties in Maryland, Massachusetts, Texas and other states.
The deal, the largest of the year, comes at a time when major real estate deals are thin, slowed by rising interest rates, slower rental growth and harder debt financing.
Newmanan affiliate of the American Teachers Insurance and Annuity Association, did not disclose the deal price but said the deal doubled its affordable housing assets under management to $6.4 billion.
The deal, which also includes undeveloped land and existing buildings requiring repairs, could add 8,000 low-income apartments, according to the Wall Street Journal. The buildings are largely government subsidized, and most tenants earn 60% or less of the area’s median income.
Vaughn, a former Boston Red Sox and New York Mets first baseman who won the American League MVP award in 1995, co-founded Omni with Eugene Schneur in 2004, a year after his final season. The company has since become one of the largest players in New York’s affordable housing space.
Jones Lang LaSalle Securities, LLC, an affiliate of JLL Americas, Inc., advised Nuveen on its acquisition of Omni Holding Company. CBRE Affordable Housing partnered with CBRE Capital Advisors to advise Omni.
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The deal comes as Nuveen Real Estate plans to launch its U.S. Impact Housing Fund, which focuses on investing in rent-subsidized, income-restricted and “naturally occurring affordable housing,” or NOAH assets.
— Keith Larson
