A leading provider of high-quality affordable housing in the U.S.
Project Overview
In July 2021, Blackstone reached an agreement to acquire American International Group’s (AIG) interests in a portfolio of over 650 affordable housing communities throughout the United States.
RealFoundations was engaged by Revantage, Blackstone’s dedicated real estate corporate services provider, to support the organizational and technological integration of April Housing, Blackstone’s newly created affordable housing portfolio company, and to assemble an Integration Management Office (IMO) responsible for:
- Onboarding the former AIG personnel and portfolio assets,
- Designing the interim and future-state technology landscape for the new portfolio,
- Coordinating a Transitional Service Agreement where AIG maintained certain systems for April Housing’s use during the transition period, and
- Providing structure to the transition and supporting the various internal teams with individual workstream efforts.
“RealFoundations’ efforts were essential to closing this transaction and forming this new company. The complexity of the company’s operations and technology stack, combined with a tight timeframe made RealFoundations’ methodology, organization, and technical expertise critical to our success.”
— Haley Hamilton, Chief Information Officer, Revantage
Challenges
The acquisition entailed a large portfolio completed in a short timeframe with multiple complexities including:
- Accelerated acquisition timeline and formation of a new portfolio company,
- Government-regulated Low-Income Housing Tax Credit (LIHTC) business,
- Proprietary technology platforms require rigorous effort to maintain and transition to the new portfolio company, and
- Complex program of improvement initiatives delivered in conjunction with the new operating and technology platforms.
Value-Add Solutions
RealFoundations established a hybrid Blackstone / Revantage / April Housing Integration Management Office that:
- Coordinated efforts to have Blackstone and April Housing fully assume the affordable housing portfolio’s operations,
- Managed 18 operational and technology workstreams, comprised of 70+ personnel and 1,100+ activities to achieve target close on time and under budget,
- Helped define and prioritize organizational transformation initiatives and develop work plans to address and mitigate risk, and
- Developed a Transitional Services Agreement allowing for seamless operations and a logical, sequenced draw down from legacy systems including the transition of networks, email, security, and the two legacy offices to the new company.
Realized Benefits
Delivered a smooth, dependable transition to April Housing. Designed and stood up a brand-new Blackstone Portfolio Company and transitioned assets, technology, and personnel in five months. Laid the groundwork for a best-in-class operating model, leaving April Housing poised for growth.
April Housing and Revantage now benefit from:
- A best-in-class, scalable, real estate operating platform created specifically for April Housing’s affordable assets,
- Industry-leading processes designed for efficient portfolio management, and
- A repeatable, dependable asset onboarding model for future transactions.
Connect with Us
To learn more about this initiative and how RealFoundations can help you run real estate better, contact our Enterprise Managing Consultant Barry Faulkner by email or +1 646 825 7991.
About RealFoundations
RealFoundations (RF) is the world’s foremost professional services firm focused solely on the real estate industry. Through our delivery of Management Consulting and Managed Services, we help companies that develop, own, operate, service or invest in real estate make better, more profitable decisions. We are proud partners to over 500 real estate companies around the globe, providing accelerated solutions that solve some of real estate’s most complex challenges. We Make Real Estate Run Better.
