Author: ipgocorp

NEW YORK, NY – Clipper Realty an owner and operator of multifamily residential and commercial properties in the New York metropolitan area, announced that it has entered into an agreement to acquire 10 West 65 Street in New York.

The building comprises of approximately 82,000 square feet, plus 53,000 square feet of air rights.

The purchase price was $79 million or $585 per square foot.

The 82 unit property is located near Lincoln Center and Central Park in the Upper West Side submarket of Manhattan. The Company plans to invest incremental capital to enhance the property.

The Company expects to finance the acquisition with property level mortgage debt and cash on hand, with expected closing by fourth quarter 2017. The Company makes no assurances that this acquisition will be completed on the terms agreed, or at all.

Clipper Realty is a self-administered and self-managed real estate company that acquires, owns, manages, operates and repositions multifamily residential and commercial properties in the New York metropolitan area, with an initial portfolio in Manhattan and Brooklyn.

WASHINGTON, DC – Fannie Mae announced its Healthy Housing Rewards initiative aimed at providing a financial incentive for borrowers who incorporate healthy design features for newly constructed or rehabilitated affordable multifamily rental properties. Healthy Housing Rewards is one of several partnerships that Fannie Mae is advancing as part of a corporate-wide effort called Sustainable Communities Partnerships and Innovation.

The first phase of the Healthy Housing Rewards initiative will provide a pricing break for borrowers who incorporate design features that improve air quality, encourage physical activity, and incorporate common space, community gardens, and playgrounds into newly constructed or rehabilitated affordable rental properties.

“Incorporating healthy design features in affordable multifamily properties can have a big impact on residents – from increasing physical activity and social interaction to reducing environmental triggers for asthma,” said Jeffery Hayward, Executive Vice President, Multifamily, Fannie Mae. “When we strengthen the connection between affordable housing and the long-term health and stability of the people and families who live there, we help create more sustainable communities across the country. This new initiative will provide a financial incentive to borrowers who invest in the health and stability of the people who live in their affordable housing properties.”

Borrowers will be required to demonstrate that properties meet or exceed the minimum achievement score of 90 points under the Center for Active Design’s Healthy Housing Index, as well as other affordability requirements defined by Fannie Mae. This initiative will target properties where at least 60 percent of the units are serving tenants at 60 percent of average median income or less. Fannie Mae aims to provide below-market-rate financing for properties that meet the Healthy Housing standards.

ORLANDO, FL – Avesta announced that it has acquired a 354-unit portfolio in the Greater Orlando market for $32 million. The Altamonte Springs portfolio adds to Avesta’s growing presence in Central Florida, which currently includes over 1,500 apartment homes.

Avesta has rebranded and operationally merged the communities in the portfolio, Altamonte Villas and Palms at Altamonte, as East Pointe at Altamonte.

East Pointe at Altamonte is located in the ideal, family-friendly submarket of East Altamonte Springs. The community is located near a wide variety of commerce and entertainment options, including Uptown Altamonte and Cranes Roost Park, Central Florida’s premier outdoor event venue. 

“We are proud to offer another Avesta community to the Orlando market,” said Rachel Ridley, partner at Avesta. “The East Altamonte Springs submarket is a perfect fit for our investment thesis, underlined by declining vacancies and more than 20 percent rent growth over the last three years. We are confident that continued population growth in the Central Florida region will continue to drive demand for multifamily assets.”

The East Pointe at Altamonte portfolio offers a mix of one and two bedroom apartment homes, including townhomes, and features the following amenities: two swimming pools, a fitness center, sports court, dog park, central laundry facilities and select covered parking.

As part of Avesta’s strategy to reposition the East Pointe at Altamonte portfolio, it has commenced a $5 million renovation program to modernize the interior units and upgrade the exterior aesthetics of the property and its amenities.

NEW ORLEANS, LA – 365 Connect, a leading provider of award-winning marketing, leasing, and resident technology platforms for the multifamily housing industry, announced today that the company has received a gold Muse Creative Award for its Resident Lifecycle Platform. This prestigious, international award recognizes 365 Connect’s capabilities to deliver innovative and creative solutions to meet the rapidly-changing needs of the multifamily housing industry.

The Muse Creative Awards is an international competition for creative professionals who hold the unique ability to inspire through concept, writing, or design in both traditional and electronic media. From broadcast and print to social media and emerging platforms, winners were selected in a broad scope of categories.  Administered by the International Awards Association, winning entries are carefully selected by a panel of creative professionals from around the globe. This year’s competition  boasted entries from 35 countries including Argentina, Brazil, Belgium, Canada, China, Denmark, France, Germany, Guatemala, Hong Kong, Hungary, India, Iran, Ireland, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Panama, Poland, Portugal, Russia, Singapore, Slovakia, Spain, Sweden, Switzerland, Turkey, Ukraine, the United Kingdom, and the United States.

“We wish to recognize the singular achievements of small and medium-sized firms, and the creative professionals who represent the heart and soul of the global marketing communications industry,” stated Kenjo Ong, co-managing director for the Muse Creative Awards. “We are honored to present 365 Connect with this award, which illustrates their creativity, skill, passion, and dedication to their work.”

365 Connect was recognized for its revolutionary Resident Lifecycle Platform. The platform encompasses the entire spectrum of resident services with multi-channel digital marketing, seamless transactions to convert prospects into residents, and an integrated mix of content and communication, allowing the next generation of renters to request services, pay rent, and renew leases. The platform is proven to reduce operating expenses, increase qualified prospect traffic, and retain residents for multifamily housing operators.

365 Connect Founder and CEO, Kerry W. Kirby, responded, “365 Connect is excited to have its technology acknowledged on an international level, and we are truly honored to receive this highly acclaimed award. Our focus is to connect both future and existing residents with where they live by providing a host of services, resources, and communication tools. This award emphasizes our unwavering commitment to transforming how apartment communities market, lease, and deliver services.”

Ong added, “Winning a Muse Creative Award is a significant career accomplishment for the recipients.  With vetted panelists, tough criteria, blind judging processes, and strict bylaws limiting winners, only the best entries received recognition. The creative work this year was truly outstanding and inspiring.”

365 Connect has received an array of regional, national, and international technology awards. The company is highly recognized by its peers for its unique ability to market communities across the Internet, automate social media postings, and deliver decision-making resources and transactional tools across multiple devices. Today, 365 Connect’s innovative Resident Lifecycle Platforms are utilized across the nation by the most respected multifamily housing operators in the industry.

DARIEN, CT – Maplewood Senior Living announced that it will begin construction of a 34-unit expansion for the sought after Maplewood at Darien in late summer 2017. Maplewood has purchased an adjacent property which will be demolished to accommodate the addition.

The expansion will increase Maplewood at Darien’s current 66-unit community to 97 and will continue to provide specialized care to residents with traditional assisted living and memory care needs. The interior design will carry the same Newport Inn style of elegance and sophistication seen throughout the entire community. 

“We are thrilled to have the opportunity to expand Maplewood at Darien and provide needed support to area seniors who wish to stay in Darien,” said Gregory D. Smith, President and CEO of Maplewood Senior Living.

Stein-Troost of Norwalk, Connecticut is the architect and Redniss and Mead is the civil engineer. Both have worked on a number of Maplewood Senior Living developments over the years, including the original Maplewood at Darien.

Based in Westport, Connecticut, Maplewood Senior Living is known for its upscale senior living residences, offering a broad range of premier services, amenities and care to its residents.  Maplewood Senior Living owns and operates six assisted living and memory care communities in Connecticut, as well as additional locations in both Massachusetts and Ohio. Future developments include Princeton, NJ, as well as the Upper East Side of Manhattan. 

NEW YORK, NY – Student.com, the world’s largest marketplace for student accommodation, released the Cities in Focus: Global Student Accommodation Indicator – a report revealing the world’s most expensive and affordable cities for student housing.

The report analyses weekly rent spend by students who booked accommodation in 92 cities worldwide last year via Student.com. On average, students in New York, Boston and London spend the most on their accommodation rent globally, while students in Auburn (Alabama), Athens (Georgia), and Tallahassee (Florida) spend the least. In New York, students spend on average $431 USD per week on their rent, 98 percent higher than the global average. In terms of countries, average weekly rent spend is highest in Australia – 23 percent above the global average.

“It’s evident that the big urban centres around the world remain huge magnets for both international and domestic students. On average, students pay more to live in these cities, but that’s not to say that there aren’t more affordable options available,” said Luke Nolan, Founder and CEO, Student.com. “Across Australia, the UK and the US, cities with larger supplies of purpose-built student accommodation (PBSA) tend to be, on average, more affordable than cities that are under supplied. As the PBSA market grows, we’ll continue to see a more diversified range of options that cater to different budgets.”

In addition to the global rankings, the report also includes country data for the UK, the US and Australia. In terms of total bookings, London, Los Angeles and Sydney are the most popular cities in the UK, the USA and Australia respectively.

“We speak to students around the world every day and our biggest piece of advice is always: start your search as early as possible. By planning ahead and exploring the market, students can find quality accommodation that fits within their budgets – even in cities that are more expensive than average,” commented Nolan.  

To view the full report, visit Student.com

NEW YORK, NY – The value of new construction starts in April dropped 13% from the previous month to a seasonally adjusted annual rate of $647.8 billion, according to Dodge Data & Analytics.  The decline followed three straight months of gains, which saw total construction activity rising 20% from the lackluster amount reported back in December. Much of April’s slide for total construction reflected a steep 39% plunge by its nonbuilding construction sector, which had been lifted in March by the start of two large pipeline projects – the $4.2 billion Rover natural gas pipeline in Ohio and Michigan, and the $2.5 billion Mariner East 2 propane and natural gas liquids pipeline in Pennsylvania.  Meanwhile, residential building slipped a more moderate 5% in April, and nonresidential building receded only a slight 1% as it basically held steady with its pace in February and March.  During the first four months of 2017 total construction starts on an unadjusted basis were $213.9 billion, down 4% from last year’s January-April period.  If the volatile manufacturing plant and electric utility/gas plant categories are excluded, total construction starts during the first four months of 2017 would be up 4% compared to last year.

April’s data lowered the Dodge Index to 137 (2000=100), compared to 157 for March and the 152 average for the first quarter of 2017, yet still above December’s 131. “The construction start pattern so far in 2017 can be characterized as three steps forward and one step back, as the often hesitant pattern of the construction expansion continues,” stated Robert A. Murray, chief economist for Dodge Data & Analytics.

“The first three months of this year drew support from a number of very large projects, most notably several massive pipeline and airport terminal projects,” Murray continued.  “While April did include groundbreaking for the $1.3 billion Oceanwide Center mixed-use complex in San Francisco CA, comprised of two high-rise towers, the boost from very large projects in April was generally less than what occurred during the first three months of this year.  In addition, both residential building and public works had been trending upward through March, but then experienced a pause in April.  In contrast, nonresidential building in April was able to remain essentially stable.  On the plus side for construction, Congress in early May passed a continuing resolution for fiscal 2017 appropriations that includes a small increase for highway spending, bringing it up to levels called for by the FAST Act (the multiyear federal transportation legislation).  And, long-term interest rates have steadied for the time being, following the increases that were reported in late 2016 and early 2017.”

Nonbuilding construction was $119.0 billion (annual rate) in April, down 39% from its heightened March amount.  Nonbuilding construction had registered steady growth during the first three months of 2017, with March activity up 16% from nonbuilding’s average pace during 2016.  The public works categories as a group plunged 48% in April, with much of the decline coming from an 83% slide for the miscellaneous public works category, which includes such diverse project types as pipelines, mass transit, outdoor sports stadiums, and site work.  Miscellaneous public works in March had included the $4.2 billion Rover natural gas pipeline in Ohio and Michigan, the $2.5 billion Mariner East 2 pipeline in Pennsylvania that will transport propane and other natural gas liquids, and the $300 million stadium for the DC United soccer team in Washington DC.  By contrast, the largest miscellaneous public works project entered as an April start was a $200 million portion of the Sound Transit East Link light rail project in Seattle WA.  Sewer construction also experienced a sharp April decline, falling 41%.  Highway and bridge construction in April fell 10%, retreating from its improved volume in March.  The top five states in terms of the dollar amount of highway and bridge construction starts in April were Florida, Ohio, Texas, Iowa, and Pennsylvania.  On the plus side for public works, April gains were reported for water supply construction, up 9%; and river/harbor development, up 10% with the help of a $200 million ferry dock project in Seattle WA.  The electric utility/gas plant category in April climbed 71% from a weak March, aided by the start of six large wind farms located in these states – Ohio ($450 million), Texas ($342 million), Illinois ($315 million), Iowa ($255 million and $252 million), and New York ($156 million).

Residential building, at $295.4 billion (annual rate), settled back 5% in April.  Single family housing slipped 6% in April, retreating for the second month in a row after showing modest improvement during the fourth quarter of 2016 and the first two months of 2017.  April’s pace for single family housing was still 5% above the average monthly pace during 2016.  By geography, single family housing in April showed this performance relative to March – the South Atlantic, down 11%; the West, down 5%; the Midwest, down 4%; the South Central, down 3%; and the Northeast, up 2%.  Multifamily family housing in April receded 3% from March.  There were seven multifamily projects valued at $100 million or more that reached groundbreaking in April, led by the $387 million multifamily portion of San Francisco’s Oceanwide Center, the $349 million multifamily portion of the $500 million One Beverly Hills mixed-use complex in Beverly Hills CA, and the $280 million One South Halstead apartment tower in Chicago IL.  In April, the top five metropolitan areas in terms of the dollar amount of multifamily starts were the following, in order – San Francisco CA, Los Angeles CA, New York NY, Chicago IL, and Washington DC.  Through the first four months of 2017, the top five metropolitan areas were the same, although with this order – New York NY, Los Angeles CA, Chicago IL, Washington DC, and San Francisco CA.

Nonresidential building in April was $233.4 billion (annual rate), down 1% from March.  The commercial building categories as a group were up 6% in April, led by a 24% increase for office buildings.  There were five office building projects valued at $100 million or more that reached groundbreaking in April, led by the $780 million office portion of San Francisco’s Oceanwide Center, the $321 million office portion of a $420 million office and retail high-rise in Charlotte NC, and a $300 million Facebook data center in Fort Worth TX.  The commercial garage category rose 14% in April, lifted by $99 million for the garage portion of Charlotte’s $420 million office and retail high-rise, while hotel construction rose 5% with the lift coming from $106 million for the hotel portion of Beverly Hills’ One Beverly Hills mixed-used complex, $98 million for a convention center hotel in Irving TX, and $95 million for the hotel portion of San Francisco’s Oceanwide Center.  On the negative side, both stores and warehouses retreated in April, falling 7% and 20% respectively.  The manufacturing plant category in April jumped 147% after its weak March amount, helped by the start of a $240 million livestock processing facility in Iowa and a $200 million wood processing facility in Michigan.

The institutional categories as a group fell 16% in April.  Much of the downturn came from an 85% plunge for the transportation terminal category, which had been lifted in March by the start of two projects at Los Angeles International Airport – the $1.9 billion Delta relocation to Terminals 2 and 3, and the $961 million Midfield Satellite Concourse North (phase 1).  Also sliding back in April were public buildings (courthouses and detention facilities), down 10%; and healthcare facilities, down 3%.  On the plus side, educational facilities increased 12%, helped by large high school projects in Snoqualmie WA ($156 million) and Billerica MA ($141 million), as well as groundbreaking for Columbia University’s $150 million new business school facility in New York NY.  April gains were also reported for religious buildings, up 43%; and amusement-related construction, up 50%.  The amusement category was lifted by the start of the $390 million Dickies Arena in Fort Worth TX and the $200 million Vessel at Hudson Yards in New York NY, which is a 150-foot tall interconnected stairway that’s located in a five-acre plaza at the Hudson Yards development.

The 4% downturn for total construction starts on an unadjusted basis during the January-April period of 2017 came as the result of a mixed performance by major sector.  Nonbuilding construction dropped 21% year-to-date, with electric utilities/gas plants down 68% while public works climbed 5% (reflecting the sharp gains for pipeline projects in early 2017).  Residential building was unchanged year-to-date, with single family housing up 7% while multifamily housing retreated 16%.  Nonresidential building increased 5% year-to-date, with institutional building up 23%, commercial building down 6%, and manufacturing building down 30%.  By major region, total construction starts in the first four months of 2017 showed this pattern – the South Central, down 20%; the Northeast, down 9%; the West, down 1%; the Midwest, up 1%; and the South Atlantic, up 10%.

Added perspective is made possible by looking at twelve-month moving totals, in this case the twelve months ending April 2017 versus the twelve months ending April 2016.  On this basis, total construction starts were up 3%.  By major sector, nonbuilding construction dropped 10%, with electric utilities/gas plants down 42% while public works grew 4%.  Residential building advanced 3%, with single family housing up 7% while multifamily housing fell 5%.  Nonresidential building increased 12%, with institutional building up 15%, manufacturing building up 12%, and commercial building up 10%.  By major region, the twelve months ending April 2017 showed this pattern for total construction starts – the South Central, down 9%; the Northeast, down 4%; the Midwest, up 7%; the West, up 8%; and the South Atlantic, up 13%.

SEATTLE, WA – As rent becomes more expensive, renters are starting to look for cheaper housing options outside downtown cores, prompting rent payments to rise faster in the suburbs than in urban areas, according to a new Zillow report. For the first time in four years, suburban rents are rising faster than urban rents.

An increase in multifamily construction has slowed rent growth across the country, with rents rising at their slowest pace in five years. The suburbs often offer larger apartments and more single-family homes for rent with more space — about 19 percent of all single-family homes in the U.S. are rentals, up from 13 percent in 2005.

In the U.S., the median monthly cost of a suburban rental is up about 2.5 percent year-over-year, while the median cost of an urban rental is up 2.3 percent. At this time last year, the median urban rental price was up 5 percent year-over-year, while median suburban rental prices were up 3 percent.

The trend is more pronounced in booming housing markets where rent affordability is worsening. Rents in the Nashville, San Francisco and Seattle metro areas are growing faster in the suburbs than in urban areas as rising costs force renters out of the city, increasing demand in the suburbs. Over the past decade, the share of income needed for the median rent payment in the San Francisco metro has increased from 34 percent to 44 percent. In the Seattle metro, the share has increased from 26 percent to 32 percent.

Expensive coastal cities are coming off about a decade of rapidly rising rents. Years of increases have pushed urban living out of reach for many renters, who may be choosing a longer commute in exchange for cheaper rental payments. Rent affordability is a significant issue for renters across the country, and in many major metros, the share of income needed to pay rent well surpasses 30 percent.

“Because walkable urban centers close to amenities are typically a big draw for renters, you’d expect rents to rise faster in the city than in the suburbs — which is exactly what we’ve been seeing until very recently,” said Zillow Chief Economist Dr. Svenja Gudell. “But a handful of factors are helping turn the tables and beginning to push suburban rents up at a higher clip. These include deteriorating rental affordability in expensive urban cores; new apartments, albeit high-end ones, opening downtown compared to relatively few in outlying areas; and preferences among some renters toward the space offered by single-family homes in the suburbs. Rents themselves are still lower in the suburbs, but if demand keeps growing for suburban rentals and supply continues to lag, that will also start to change. As more formerly urban renters move to the suburbs in coming years, we’ll likely start seeing more apartment buildings and walkable amenities popping up in those communities.”

The price of an urban rental in Nashville is up 1.7 percent since this time last year, but the price of a rental in the suburbs is up almost 5 percent, with the median price of suburban rentals almost $500 less than an urban rental, despite many suburban rentals offering more space. Rents in Seattle are growing strongly across the metro, but the median price of suburban rentals is growing faster than the price of urban rentals by about 2 percentage points.

In San Francisco, urban rents are down 0.4 percent since this time last year, but rents in the suburbs are up 2.6 percent. The median rent price of a suburban rental is about $350 less than an urban rental in San Francisco.

CHICAGO, IL – Alderman Walter Burnett headlined a ceremony celebrating the grand opening of Clybourn 1200, a new mixed-income, mixed-use apartment community located in the heart of the Cabrini-Green revitalization area on the city’s north side. The ribbon-cutting for the new 84-unit apartment community that will serve families of all income levels was hosted by the development team of Brinshore-Michaels.

“Clybourn 1200 represents a perfect example of effective community engagement and collaboration,” said Richard Sciortino, a founding principal of Brinshore Development, LLC. “Our partnership with the Cabrini Local Advisory Council as well as program initiatives with City Farms, Near North Unity Program, Chicago Bee Co-Op and others resulted in a rich and diverse development.” The seven-story high-rise will include 26 public housing units on the nearly one-acre site and features modern, dramatic architecture; green and sustainable features and impressive energy efficiency for residents in a mix of studios, one-, two-, and three-bedroom apartment homes.

“This is yet another example of the progress CHA is making with its development partners as we head toward the completion of the Plan for Transformation,” CHA CEO Eugene Jones, Jr. said. “With the delivery of these units, we are again showing the unmistakable momentum that has been created here at CHA in producing housing and retail options and other amenities people want and need in Chicago neighborhoods.”

“We are excited about the new development at Clybourn 1200; this development brings so many positive components to the neighborhood, including a day care center, which is a great convenience for new residents who have children. Additionally, this development will help formerly displaced residents wishing to relocate back to community,” said Alderman Burnett.

There is a working apiary on the building’s rooftop, which is home to multiple honeybee hives being cared for by the Chicago Honey Co-op. On the ground level, 16,000 square feet of commercial space will be occupied by local businesses, including the Happy Trails Day Care Center. On the second floor, residents will be able to enjoy a beautifully landscaped deck with outdoor seating and a fireplace.

A community garden, located on the third floor, is being offered in partnership with City Farm.

Clybourn 1200’s additional green features include radiant floor heat, solar hot water, and Energy Star appliances and fixtures.  

The community will serve households with a variety of income levels, including market-rate tenants, public housing residents, and families with incomes below 80 percent of the Area’s Median Income (AMI). In a neighborhood where rents have been trending upward, Clybourn 1200 represents an important new affordable housing resource. Located across the street from the former site of the Cabrini-Green public housing complex, Clybourn 1200 is near shopping, employment opportunities, and public transportation.

“In addition to achieving the city’s mixed-income housing goals for a prominent location, the new building has a thoughtful and functional design that complements nearby retail and residential uses and the ongoing Near North Redevelopment Initiative,” said DPD Commissioner David Reifman.

Financing for the project included $13.1 million in private equity generated from the sale of 9% federal Low Income Housing Tax Credits and $1.9 million in private equity raised from sale of Chicago Donation Tax Credits, generated from the city of Chicago’s donation of the land. Public financing includes an $8.1 million CHA loan, along with $8.1 million in Tax Increment Financing assistance. Additional private financing includes a $7.8 million Citibank loan.

The development team included Brinshore-Michaels, a partnership of Brinshore Development, and The Michaels Development Company, which together has collaborated on nearly 1,700 units of affordable housing in Chicago. The development team also included the non-profit organization Cabrini-Green LAC Community Development Corporation, which also has an ownership stake in the property. McShane Construction served as the general contractor. The community is being managed by Interstate Realty Management, which will ensure that it remains a long-term asset to the neighborhood. The Near North Unity Program has partnered with IRM to promote community integration.

MOORESVILLE, NC – Lowe’s Companies announced it has entered into a definitive agreement to acquire Maintenance Supply Headquarters, a leading distributor of maintenance, repair and operations (MRO) products to the multifamily housing industry, for a total transaction value of $512 million. Based in Houston, Texas, Maintenance Supply Headquarters operates 13 distribution centers serving customers in 29 geographic areas, primarily in the western, southeastern and south central U.S., with a portfolio of more than 5,300 products and value-added services for maintaining and renovating multifamily properties.

The acquisition is expected to be completed in Lowe’s second fiscal quarter, following the receipt of regulatory approval and satisfactory completion of customary closing conditions. The transaction is expected to be accretive to Lowe’s earnings in fiscal 2017.

Purchasing Maintenance Supply Headquarters is an important step in Lowe’s strategy to deepen and broaden its relationship with the Pro customer and better serve their needs. When combined with Lowe’s November 2016 acquisition of Central Wholesalers, a prominent MRO distributor in the Mid-Atlantic and Northeast, this acquisition will substantially expand Lowe’s ability to serve the multifamily housing industry.

“Lowe’s has long served the multifamily housing industry through our Pro Services business, and we are excited about the potential to further expand our presence in this highly attractive and growing customer segment,” said Richard D. Maltsbarger, Lowe’s chief development officer and president of international. “Together, Maintenance Supply Headquarters and Central Wholesalers will expand our capabilities in serving this key segment while strengthening our platform for future growth with enhanced product and service offerings for MRO customers.”   

Upon the close of the Maintenance Supply Headquarters transaction, Lowe’s combined multifamily MRO business will include 16 distribution centers in attractive regions throughout the nation generating more than $400 million in annual sales.

Richard “Rusty” Penick, co-founding partner and CEO of Maintenance Supply Headquarters, added, “We are thrilled to become part of the Lowe’s family and have high regard for the team and the company’s leadership in the home improvement industry. Our partnership with Lowe’s marks an exciting next step in the evolution and growth of Maintenance Supply Headquarters. Like Lowe’s, our team shares a commitment to deliver truly exceptional service for our customers, and over the past 10 years, we have been privileged to serve many of the nation’s top multifamily property management companies and their communities. We look forward to the new opportunities ahead.”

Founded in 2006, Maintenance Supply Headquarters’ broad product offering includes appliance, plumbing, HVAC, lighting, hardware, electrical and other products for maintaining and renovating multifamily properties, as well as services such as renovation project support, custom fabrication and educational classes.

Michael A. (Mike) Tummillo, a 13-year Lowe’s veteran and recently appointed senior vice president of Lowe’s pro sales organization, will oversee Maintenance Supply Headquarters and Central Wholesalers. He will also lead Lowe’s Pro Services business and Alacrity Services, a leading supplier of home restoration and repair services. Tummillo is responsible for deepening and broadening Lowe’s relationship with Pro customers to better serve their needs.

Goldman Sachs & Co. LLC is acting as financial advisor to Lowe’s, while Hunton & Williams LLP is acting as legal advisor. Crutchfield Capital Corporation is acting as financial advisor to Maintenance Supply Headquarters, while Porter Hedges LLP is acting as legal advisor.