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Broadstone gets new CEO; Tait shifts her post

Broadstone Real Estate LLC has changed its management structure.

Broadstone co-founder Amy Tait has been named executive chairman and chief investment officer of Broadstone Real Estate and its entities. She previously served as chairman and CEO. Tait said her new roles will be full-time responsibilities with a focus on the overall organization and opportunities for growth.

Christopher Czarnecki has been promoted to CEO of Broadstone Real Estate and the real estate investment trusts. Czarnecki previously served as chief financial officer of Broadstone Real Estate and Broadstone Net Lease Inc. and executive vice president and chief financial officer of Broadtree Residential Inc. He has been with Broadstone since 2009.

Prior to joining Broadstone, Czarnecki was a commercial real estate lender and credit analyst for Branch Banking & Trust Co. where he was responsible for the underwriting of new commercial construction projects, portfolio management and credit analysis.

The moves come as the Rochester-based firm continues to add to its staff and its offerings. The property management firm has nearly 100 employees in six states, with the majority of its staff at its Clinton Square headquarters downtown.

Czarnecki and Tait—both graduates of the University of Rochester Simon Business School—complement each other, Tait said. Czarnecki describes Tait as a mentor.

“Amy’s values and judgment are seen in all we do,” Czarnecki said.

Tait said that over the years Broadstone has transitioned to a financial services company from a real estate company.

Broadstone Real Estate consists of two segments. Broadstone Net Lease is a private REIT trust that acquires and holds freestanding, single-tenant, net
leased properties. The other segment is Broadtree Residential, a private residential income REIT.

Broadstone Net Lease oversees more than $2 billion in properties in 37 states and serves over 2,000 high- and ultra-high net worth investors. TheREIT targets individual or portfolio acquisitions within the $10 million to $200 million-plus range.

In 2016, Broadstone Net Lease acquired 88 properties through 22 transactions for $518.8 million. The REIT now owns 428 properties. Broadstone Net Lease raised $290.8 million in equity capital in 2016 and posted an 11.22 percent total return for investors that year.

In February, Broadstone Net Lease announced the pricing of $150 million private notes placement. Company leaders said the placement diversifies Broadstone Net Lease’s exposure beyond any one lender and helps lengthen the REIT’s debt maturity schedule.

Broadtree Residential’s portfolio in-cludes 1,208 residential rental units in Western New York, Florida, the Atlanta area, the greater Minneapolis area, Kentucky and North Carolina. Future plans could include expanding the Broadtree Residential footprint to other areas of the country, Czarnecki said.
Broadtree Residential received $6.2 million in new equity in January, which includes $4.5 million invested by the management company. In November, Broadtree closed on a $25 million unsecured line of credit with M&T Bank Corp. and JP Morgan Chase & Co.

The growth in both areas is driving an increase in employment at Broadstone Net Lease. Czarnecki estimates the firm will expand from 80 workers at the end of 2016 to 105 employees by the end of 2017.

Tait believes the firm’s success goes back to its founder, who stressed a culture of service at the firm.

Her father, Norman Leenhouts, was Broadstone’s co-founder and its senior adviser. He died in January at the age of 81.
Norman Leenhouts and his identical twin brother, Nelson Leenhouts, co-founded Home Leasing in 1967. The company went public in 1994 and changed its name to Home Properties Inc. The Leenhouts brothers stepped down as chief executives in 2003.

Home Properties then transitioned its affordable housing and commercial real estate operations back to the brothers. Norman Leenhouts formed Broadstone Real Estate in 2006 with Tait and her husband, Robert Tait. Nelson Leenhouts took control of the affordable housing business and formed Home Leasing LLC.

Broadstone Real Estate recently consolidated its operations from two floors at Clinton Crossing to the eighth floor; Broadstone now occupies the floor’s entire 24,000 square feet. The floor previously housed Home Properties.

Tait believes the changes have put the firm in a favorable position.

“We’re right where we should be,” Tait said.

3/31/2017 (c) 2017 Rochester Business Journal.

To obtain permission to reprint this article, call 585-363-7269 or email madams@bridgetowermedia.com.

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