Seniors Housing Business

JUL 2018

Seniors Housing Business is the magazine that helps you navigate the evolution of the seniors housing industry.

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34 www.seniorshousingbusiness.com Seniors Housing Business n July 2018 By Jeff Shaw Jack Manning and Boston Capital are not household names in seniors housing. They aren't staples at industry events, and their names rarely come up when discussing the big- name owners in the industry. Manning founded Boston Capital in 1974, and is the chairman and CEO of the company. While he focuses on all sorts of multifamily, his specialty is affordable housing. He funds most of his investments through the Low-Income Housing Tax Credit (LIHTC) program. Manning is a luminary in the general mul- tifamily sector. He's a 44-year veteran of the industry and former Forbes 400 billionaire. He was No. 354 on the 2006 list, with a net worth of $1.1 billion, but hasn't made the list since. He says that honor was "out of left field and old news," and generally not something he or the company focus on. The company he founded has invested nearly $20 billion in 220,000 multifamily units throughout its history. This trend of focusing on affordable hous- ing led him to build affordable seniors housing as well. States and municipalities are the ones who decide how the tax credits are allocated to seniors housing versus standard affordable housing, so Boston Capital took the opportu- nistic approach of learning to build for seniors. Through the construction of affordable hous- ing, Boston Capital has quietly become the sixth largest owner of seniors housing in the United States, amassing a portfolio of 431 prop- erties and 32,985 units. The largest property is 704 units, while the smallest is 15 units. That puts the company behind only the giants of the industry on the list of total units: Brook- dale Senior Living, Welltower, Ventas, HCP and Senior Housing Properties Trust. Despite many years in politics and big busi- ness, Manning is not what one would typically think of when imagining a billionaire, though. He's disarmingly casual and easy to talk with. Manning even asked about this interviewer's life during a Q&A focusing on his own. The photo in his Forbes 400 profile shows him in a button-down shirt, boxer shorts and flip-flops, reading the newspaper over a cup of coffee. Seniors Housing Business spoke with Manning about his understated role in seniors housing, the overwhelming need for more affordable housing and his longstanding love for the city of Boston. Seniors Housing Business: Can you give us a quick history of how you got into commercial real estate, the founding of Boston Capital, and what's happened since then? Jack Manning: I co-founded Boston Capital 44 years ago with a good friend of mine, Herb Collins. We started the company from nothing. We went into the apartment development business back then. We watched prime lending rates go [from as low as 6.5 percent to nearly 22 percent] over the next few years. It was an extremely challenging period of time, with inflation and interest rates at all-time highs. It was not good at all. The banking industry was in trouble as well. We made it through the hard times by pro- ducing very little volume — one to two proj- ects per year. From there we decided to focus on affordable housing because of the problems that existed with people who couldn't afford to buy their own home and found rents to be too high — 50 percent or more of their income. Those were the motivat- ing factors. We believed there was a market to suc- ceed in while also doing good for people with incomes that were not substantial. They can be seniors, families or single people. As things have pro- gressed today, it's become even more of a problem in terms of providing housing for people of lesser means, whose incomes are 80 percent or less of area median income (AMI). SHB: Although you're very well known in the general multifamily world, I don't think most readers realize Boston Capital is the sixth largest owner of seniors housing in the country. How did you build a portfolio that big while flying, to a certain extent, under the radar? Jack Manning, CEO, Boston Capital n The SHB Interview Longtime affordable multifamily investor quietly builds a massive seniors housing portfolio. In addition to running Boston Capital, Manning served on President Bill Clinton's Export Council. Fast facts Company Name: Boston Capital Founded: 1974 Headquarters: Boston Seniors Portfolio: 431 communities, 32,985 units Locations: Nationwide Focus: Affordable housing

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