Urban developers Francine Kellman and Brian Raddock embark on a new solely-owned multifamily venture as co-owners of K & R Preservation, LLC
New York, August 2, 2017 – Experienced urban housing developers Francine Kellman and her co-principal Brian Raddock of Preservation Development Partners announced today that, together, they will now operate independently as K & R Preservation.
Ms. Kellman said, “Our corporate name change signifies that we have grown our business and it is now self-sustaining. Our new business model does not envision a permanent joint venture partnership, as we’ve had in the past. This has been our goal from the beginning. We will, however, consider outside investors on a transaction basis.”
K & R Preservation was formed by Ms. Kellman and Mr. Raddock and the firm has been active in the preservation of affordable housing since2010 as the 50% ownership entity of Preservation Development Partners. Preservation Development Partners will continue as the ownership business entity of its existing multifamily property portfolio.
However, K & R Preservation will conduct its future business independently. The company, solely owned and operated by Ms. Kellman and Mr. Raddock as co-principals, will seek to acquire and preserve existing multifamily housing stock in urban markets throughout the U.S., with a commitment to keep rents affordable for working families in the low- and middle-income range.
Ms. Kellman said, “We will take an active role in acquiring apartment properties that are at risk of deterioration, abandonment or financial default by speculative buyers. We will also target properties whose present owners cannot afford to maintain them, or who simply want to divest of them.”
Mr. Raddock said, “I am excited to inaugurate our fully independent venture with my long-time business partner. Our mission is to prevent the displacement of seniors and lower income families, especially in neighborhoods undergoing gentrification.”
Both principals have several decades of experience in the housing industry and have records of success in developing affordable housing, often in partnership with community development groups and government housing agencies.
At Preservation Development Partners, Mr. Raddock partnered with Ms. Kellman on a series of major property acquisitions, most recently the purchase of a portfolio of high-rise senior housing towers located in several cities in New York State’s Capital Region.
Ms. Kellman gained 14 years of hands-on experience at the U.S. Department of Housing and Urban Development, followed by nine years at the New York State Housing Finance Agency. At HFA, she created and launched the agency’s first housing preservation program, refinancing and renovating more than 5,000 units of low-income housing.
Mr. Raddock was co-principal with Ms. Kellman at Preservation Development Partners, the partnership they formed with BFC Partners. Prior to that, Mr. Raddock served with Ms. Kellman in the New York office of Seattle-based Pacific Housing Advisors (now known as Vitus Group). Before joining with Ms. Kellman as a developer of affordable housing, he held the position as an analyst with Centerline Capital Group.
In the recent past, Ms. Kellman and Mr. Raddock have closed development financing transactions with the New York State Housing Finance Agency (HFA), New York City Housing Development Corporation (HDC) and with the New York City Department of Housing Preservation and Development (HPD). As a result, they have added significant numbers of units to New York State’s housing stock.
K & R Preservation’s business plan envisions immediate and fast-tracked building rehabilitation schedules for their acquired properties. Whenever possible, existing tenants will not be relocated during construction. Typically, the properties acquired by K & R Preservation will be upgraded with new elevators, new baths and kitchens, roofs, windows, boilers, heavy duty re-wiring, trash compactors, flooring and façade work.
In 2015, Ms. Kellman and Mr. Raddock completed the acquisition and planned rehabilitation of City-supervised Mitchell-Lama development North Shore Plaza, formerly known as the Arlington Terrace apartments in Staten Island. The multifamily complex consists of four 13-story elevator towers and four walk-up townhouse apartment buildings located in the Mariners Harbor section.