First U.S. Acquisition Underpins Firm’s Objective of Forming Sector Focused Partnerships; Stephen N. Benjamin to Lead Dermot, with Continued Focus on NYC Multifamily
Global real estate investment management firm Forum Partners (Forum) and The Dermot Company (Dermot) announced today that Forum has acquired a strategic interest in Dermot. Dermot is a fully-integrated real estate investment, development and management company based in New York City. Forum’s initial investment includes an interest in the company and the purchase of interests in four NYC assets developed by Dermot.
Forum is making the investment alongside the senior management team of the company. While terms were not disclosed, through a series of new developments, recapitalizations, and value-add acquisitions, Dermot expects to deploy in excess of $750 million over the next 18 months.
Dermot principal Steve Benjamin will lead the company as president and CEO following the retirement of founder William P. Dickey. Since its formation in 1991, Dermot has remained tightly focused on all facets of multifamily sector investment and operations, including ground-up development, asset repositioning and the structuring of innovative financing transactions. To date, Dermot has owned or developed in excess of $2.5 billion in 24 properties.
“We’ve known Steve for many years and are very pleased to invest in The Dermot Company, which has created an impressive platform in New York City” said Russell Platt, Forum’s CEO. “Coupling Dermot’s strong, 20 year track record of value-add investment, development and asset management with Forum’s real estate expertise and access to long-term capital is a powerful combination. We are excited to work with Steve and his team to grow Dermot as we create scale and deal flow.
“After more than a decade of successful investing in Europe and Asia, we have expanded our focus to the U.S. This investment gives us a strong position in one of the most desirable U.S. markets alongside a highly regarded firm. Forum prides itself on the formation of well aligned partnerships at the entity level, and we look forward to further U.S.-based investments as we target opportunities to create value,” Platt concluded.
Benjamin said, “Forum’s investment in Dermot is a tremendous endorsement of our model and our team. In choosing a partner for the future, the character of the team, their understanding of our business and their long-term focus were of utmost importance. We look forward to working together as we continue to grow our New York City based strategy.