The Daily Record: Bozzuto, Pritzker in Joint Venture
July 27, 2010
Two developers have joined forces to form a $75 million investment fund to construct and acquire apartment building projects in the Baltimore-Washington corridor.
The Bozzuto Group of Greenbelt and the Pritzker Realty Group of Chicago said Tuesday they were creating a joint venture to build and acquire large rental properties in the region. The work is to begin immediately, said Toby Bozzuto, president of the Bozzuto Group.
“I think we are at the center of gravity in many ways because of new job creation, government services and BRAC,” Bozzuto said. “And we have these great hospitals in the region.”
Bozzuto said that while the economy continues to recover from the recession, the new joint venture aims to capitalize on projected growth between 2012 and 2015, particularly for renters as the credit markets freeze out many potential homebuyers.
Plans are being finalized for the first large scale multi-family rental project, to be located in Washington, D.C., which will be announced next month, he said.
“We all agree the current economy is depressing and sobering on a macro-U.S. basis and global basis,” he said. “What we think we’re seeing on a micro-basis locally is apartment rents are stabilizing and rental traffic starting to increase. We are slowly seeing jobs created.”
Pritzker Realty Group is a real estate investment company with a $5 billion portfolio in apartment buildings, office and industrial developments, parking lots, and senior living facilities across the U.S. The group was formed by Penny S. Pritzker, who is also the founder and chair of Classic Residence by Hyatt.
The 22-year-old Bozzuto Group focuses on residential real estate throughout the mid-Atlantic and Northeast.