LeChase links with Conifer in housing pushBy
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Rochester's leading commercial builder, LeChase Construction Services LLC, has formed a joint venture with Conifer Realty LLC to build affordable housing. Conifer-LeChase Construction LLC, which will be owned equally by LeChase and Conifer, is expected to begin nearly $40 million of affordable-housing construction this year. Conifer-LeChase will build all of Conifer's affordable-housing developments in New York, New Jersey, Pennsylvania and Maryland, in addition to offering construction services for other affordable-housing developers, company officials said. The joint venture was scheduled to be announced today. Conifer approached LeChase with the idea for a joint venture two to three months ago, LeChase president William Goodrich said. With nearly $194 million in dollar volume from non-residential projects in 2003, LeChase ranked No. 2 on the Rochester Business Journal's most recent list of commercial builders. LeChase was delighted at the prospect of gaining a broader penetration in the affordable-housing market, Goodrich said. "With the combination of these two companies we see incredible growth potential," he said. Conifer, which has developed nearly 200 properties and 15,000 apartment units since it was founded in 1975, merged with Rochester-based real estate investment trust Home Properties Inc. in 1996. In December 2000, a $16 million management-led buyout acquired Home Properties' affordable-housing division. The deal allowed Home Properties to tighten its focus on market-rate communities while Conifer developed the affordable-housing sector. Conifer president and CEO Richard Crossed said the idea behind the merger with LeChase is to produce better affordable housing at a lower cost. In addition, it aims to provide construction services for other developers by leveraging the size and broad-ranging expertise of its parent companies, officials said. Timothy Fournier, Conifer executive vice president and chief operating officer, said over the next 18 months Conifer-LeChase will begin with approximately $40 million in construction projects. "Approximately 30 percent of that will occur in the upstate region, and the balance throughout the other three states and downstate New York. Thereafter, we anticipate an annual average of $20 million to $30 million in construction starts, with 25 to 30 percent occurring in Upstate New York," Fournier said. Across its four offices, in Albany; Corning; New York City; and Charlotte, N.C, LeChase employs approximately 500 employees, roughly 75 percent of whom are located in Rochester. With offices in Albany; New York; Camden and Woodbridge, N.J.; and Erie, Pa., Conifer employs approximately 400 employees, 25 percent of whom are in Rochester. Starting Feb. 1, three key members of the Conifer construction team transitioned to LeChase's Rochester offices, with a complete transition planned for May. Conifer CEO Crossed called the deal a simple one in that the company will be managed by the principals of both companies. LeChase will provide the new venture with most of its systems, including accounting, contract administration and job costing, said Richard Brienzi, LeChase executive vice president and chief financial officer. LeChase project executive Erich Seber will serve as director at Conifer-LeChase. In total, the venture will have five employees, he said. Seber, who has served as director of business development and manager of the company's design-build projects, said the two companies have a lot to gain from each other. "I see areas of opportunities for both of us to improve our services," Seber said. "We both have our own histories, and by melding the benefits it's kind of like one plus one equals three." ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it / 585-546-8303) 02/04/05 (C) Rochester Business Journal |