Fallon Company has completed over $5 billion in projects and now holds about a $6 billion development pipeline concentrated in the Southeast and Boston. The firm bypasses New York despite an early Brooklyn project, favoring Nashville and Charlotte for scale, access to capital, infrastructure, financial health, amenable stakeholders, business-friendly politics and climate. Most new projects are in the Southeast. The firm argues that ending or preventing housing crises requires for-profit development at scale and delivers affordable units using Low Income Housing Tax Credits, insurer partnerships and debt from major lenders. The first phase of a Nashville project will be fully affordable with more than 300 units.
New York is such a fabulous place, he said, describing it as the social, cultural and business mecca of the United States. It's such a deep pool of opportunity. Yet Fallon sees greener pastures for his firm in the Southeast, in particular Nashville and Charlotte, as well as his home market of Boston. Why are we focused on the markets we're focused on? Scale and access to capital, the 36-year-old said in a Zoom interview with The Real Deal.
To the contrary, the only feasible strategy to end or prevent a housing crisis is to allow for-profit development at scale. Fallon does that by building affordable units the traditional way, typically with Low Income Housing Tax Credits, partnerships with big insurers such as Mass Mutual and Prudential, and debt from major lenders including Fortress Investment Group; Santander, Bank OZK, Wells Fargo and Key Bank.
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