Jorge P Newbery

For the Argentine aviator, see Jorge Newbery.
Jorge Newbery

Newbery in June 2009
Born October 29, 1965
Santa Monica, California, United States
Occupation Founder and CEO at American Homeowner Preservation
Relatives Jorge Alejandro Newbery
Website
AHPInvest

Jorge P. Newbery (born October 29, 1965) is a Californian-born entrepreneur who is the founder of American Homeowner Preservation LLC, a US-based real estate company investing in nonperforming mortgage notes with a mission to save homeowners from losing their homes to foreclosure. Through Newbery's work as an entrepreneurial real estate strategist, with 20 years of buying and selling multimillion-dollar distressed properties, he created AHP as a solution towards reversing the foreclosure crisis.

Newbery originally consulted on the non-profit American Homeowner Preservation Inc., before transitioning it to the for-profit American Homeowner Preservation LLC. As a real estate developer, Newbery has a history of taking on high-profile housing projects in distress. He is likely best known for presiding over the rebirth and subsequent demise of Woodland Meadows, a sprawling 1,100-unit project in Columbus, Ohio. Newbery's insistent efforts to keep the project afloat gave rise to extraordinary court and media battles with city officials and creditors.

Newbery went from being the developer in smaller rental properties, starting with a four-plex in South Central Los Angeles (1992- 2001). Newbery progressed to larger properties, including the 233-unit Pickwick Plaza in Kansas City (2001- 2006). He continued working successfully with distressed properties, but found some opposition with Woodland Meadows.

Newbery is also the grandnephew of Jorge Alejandro Newbery (1875–1914), one of the first Latin American aircraft pilots, who is also known for writing the first newspaper article on aviation in Argentina. The family name is still widely recognized in Buenos Aires where the second largest airport, the Aeroparque Jorge Newbery, is named after his grand uncle.

Background and education

Newbery pursued an assortment of entrepreneurial ventures throughout his youth, from delivering newspapers and selling ice cream to starting a record company from his parents’ garage. Graduating high school at the age of 16, Newbery found that he had a flair for cycling. He raced in the elite amateur category 1 for several years on teams sponsored by ICN Pharmaceuticals, Vita Crunch and others. Eventually, Newbery returned to California and started a career in real estate.

Newbery began attending Palisades High School in 1981, until the age of 16. In the years 1982 to 1984, Newbery began his own independent music label Upstart Records, in his parents’ garage. There, he recruited bands, produced records, coordinated marketing and distribution, and booked shows and tours. Upstart Records produced Southern California bands like Red Scare, Circle One, Shattered Faith, Stalag 13, Hated Principles, and Killroy. From 1982 to 1984, he took part in the release of eight records by Southern California punk bands. He produced "Youth Manifesto" a cassette tape sold in 1982 that featured interviews with and music snippets of the following bands: Bad Religion, Black Flag, Saccharine Trust, R.F. 7, Red Rockers, and Youth Brigade. He worked as a tour manager in 1984 on Red Scare's nationwide tour. Newbery disbanded Upstart Records, after two of Upstart's lead singers met untimely deaths: Red Scare's singer Bobbie Brat died of stomach cancer and the Santa Monica Police shot and killed Circle One Singer John Macias.

Newbery cycled as an elite amateur from 1985 to 1989. His time in cycling included stints on teams sponsored by ICN Pharmaceuticals and Vita Crunch cereal. His accomplishments include 1987 Southern California Road Race Championship, 2nd Place; 1987 Pan Am Road Race Trials, 44th Place; 1987 Vulcan Tour green jersey holder; 1988 Olympic Road Race Trials, 41st Place; Spenco 500, 4th Place; 1988 member of Costa Rican National Team, Tour de Mexico.

Career

Early success

Newbery began his real estate career in 1990 in the mortgage industry. At age 24, Newbery was racing full-time and making a small penance. Close Friend Cathy Hertz inspired him to make a career change through her own successes and assisted him in receiving a real estate license.

Without a college degree, he felt he had to work harder than his peers. He used the focus and determination that he learned through cycling to avoid distractions while working at Univest Home Loans. Within six months, he was the top-producing loan originator, even making more than his manager. Eventually, he became a loan officer, branch manager, and then broke off to start Sunset Mortgage in 1992. From 1992 to 1995, Newbery and a partner grew Sunset Mortgage, which still thrives today.

In 1992, he purchased his first rental property, a four-plex in South-Central Los Angeles. Buoyed by the success of buying underperforming properties and improving operations to add value, Newbery progressively took on larger and more challenging buildings.

Newbery arranged financing for developers buying distressed Southern California properties at large discounts. Newbery soon began purchasing the distressed properties himself, turning around several high-profile distressed rental properties. By 1995, he sold ownership of Sunset Mortgage to his partner in order to focus solely on distressed properties.

In 1998, Newbery purchased the 298-unit Ford Hotel on Los Angeles' Skid Row, at a large discount. The four prior owners were all incarcerated for slum violations in relation to the property. By the time he purchased 1,100-unit Woodland Meadows in 2002, he became a hands-on developer, actually living in the apartment at Woodland Meadows.

Resurgence

In 2007, Newbery was called on by Founder Emily Gomez to consult on the formation of the non-profit American Homeowner Preservation Inc. (AHP) to help homeowners stay in their homes who were in risk of foreclosure.

Summit County Port Authority (SCPA) voted unanimously to induce up to $12.5 million in bonds to fund AHP in September 2008, after Newbery used his securities experience to identify buyers for the tax exempt bonds. AHP then proceeded to market the program in the greater Akron region and, by year-end, close to 300 families had signed purchase contracts to sell their homes to AHP.

However, SCPA then became anxious. Among other concerns, they were concerned about Newbery's affiliated company BTC Financial. BTC's strategy includes creating leverage to allow lenders to approve significant discounts on debt. Without generating big discounts from lenders, AHP's model didn't work. In the end, the SCPA rescinded AHP's bond resolution. The non-profit AHP Inc. has since been taken over by the for-profit American Homeowner Preservation LLC, with Newbery taking the lead as Director.

The restructured AHP program short sold distressed homes to investors. However, the investor had to agree to a five-year lease and repurchase option with the current homeowner. Now, AHP uses crowdfunding to purchase pools of distressed mortgages and works with borrowers to find viable and sustainable solutions to keep them in their homes.

Real estate licensing & properties

Newbery has been licensed in California as a salesperson since 1990, and a broker since 1992. In 2006, he received his broker license in Louisiana; and in 2008, he received his salesperson license in Ohio. Recently, he was licensed in Florida.

Properties

Ohio

California

Newbery collaborated with the non-profit Shelter First, who provided social services to the tenants and access to job training and placement, daycare, parenting classes, etc. For the tenants, these services became amenities and a reason they valued their apartment; allowing for tenant retention, which increased collection and occupancy.

Indiana

Oklahoma

Missouri

The horrors of the building included: low collections, high vacancy, four murders in the building over an 8-month period, and a fire that killed four other tenants. The U.S. Department of Housing and Urban Development started foreclosure on the property and, due to the severity of the problems, installed a hot-line in their Dallas office to field the multitude of tenant complaints during the receivership term. Newbery's team acquired the property at the HUD foreclosure auction and the HUD Dallas office later complimented them on the fact that the overwhelming volume of complaint calls decreased almost immediately after the takeover.

Texas

Disputed property

Woodland Meadows

Woodland Meadows was destroyed by an ice storm in late 2004, which tested Newbery's resolve in a high-profile battle with insurers, the city of Columbus, creditors and contractors. Because there was a financial stranglehold with all parties involved and the loss of federal rent subsidies, Newbery was unable to persuade investors to continue investment in the project.

In 2002, Newbery led the $12,500,000 acquisition of the 1,100-unit Woodland Meadows Apartments in Columbus, Ohio which later earned him a commendation letter from the Ohio House of Representatives: "Thanks to you, Woodland Meadows is a changed community. The renovation efforts represent a community where jobs are being created, families have safe, decent and affordable housing and lives are better…winning efforts such as yours make…the State of Ohio one of the best places to live, work and raise a family."

Newbery collaborated with the same group of investors from two past projects, Ford Hotel and Pickwick Plaza Apartments acquisition, to spearhead the $2.6 million, 1,200-unit Huntington Meadows Apartments acquisition in Cincinnati, Ohio. Donald Trump boasted about selling Huntington Meadows Apartment to Hastings Bankshares of Indianapolis in 1972 in his 1987 memoir, The Art of the Deal. Unfortunately, the city rejected the offer, believing that there could be better use for the property other than affordable housing.

Keystone Towers

Keystone Towers used to be a building for up and coming trendsetters like athletes. The towers, which sit on the main highway between Indianapolis and Fishers, have deteriorated to the point of blight. They are infested with rats, human feces. Sometimes the homeless take up residence there as well. Media officials have blamed this blight on Newbery, who acquired the property in 2003. At the time of his acquisition, the property stood fully vacant. While trying to remedy the building's problems with a slow taper of residents and financial infusion, Newbery fell into other difficulties due to challenges at Woodladn Meadows in Columbus, Ohio. Thus, he moved to sell the property. In 2006, the property was sold to Southeastern Partners, who aimed to continue the improvements to the building. Southeastern Partners failed in this mission and health and building standards were not met. The Partners were also in violation for receiving Section 8 subsidies when the building was not up to code.

Officials of Marion County and other media source 2 believe that Newbery had an interested stake in the Southeastern Partners who acquired the property.

Newbery, who now lives in Chicago, said he hasn't owned Keystone since 2006. He said only a handful of tenants received vouchers for subsidized housing. In an e-mail, Newbery said that nothing in the police document establishes that he did anything wrong. The only maintenance citation issued under his ownership was in 2006, when Keystone Towers LLC was cited for garbage behind the building.

"According to the police document, Newbery and his Keystone Towers LLC received $16,430 in improper payments. Keystone Apartment Holdings LLC of Sherman Oaks, California, received $39,057 in improper payments, police said.

Newbery said he maintained the apartments when he owned them. The police document states he bought Keystone Towers in 2003. The complex was sold at a sheriff's sale in 2006.

He said he has no connection to Keystone Apartment Holdings. "We did nothing wrong", Newbery said.

Other ventures

During Newbery's cycling career, he successfully finished 44th place at Pan American Games Trials in 1987 and 41st place in 1988's Olympic Trials. His greatest accomplishment in cycling was winning 4th place in 1987's Spenco 500—a non-stop 500-mile bicycle race in Waco, Texas televised on ESPN.

In 1987, Newbery was intent on being picked for the USA National team in the Tour of Mexico—a 3-week stage race: Teams from all over the world competed and there were large crowds of spectators lining the roads as the race winds through each city. Newbery was not picked for the USA team and was momentarily dejected. However, he then decided that one way or another he was going be admitted into the race.

Newbery flew to Mexico City with a reporter from Winning magazine. At the sign-in, he asked all of the teams if they needed a rider, hoping that one of the Mexican trade teams would pick him up. With less than half an hour to go, all the teams had signed in, but then someone ran in and said that one of the Costa Rican riders had got hit by a car. Thus, he raced the Tour of Mexico for the Costa Rican National team. With three days remaining in the race, he was in 22nd place and well ahead of all of the USA riders. Unfortunately, he got food poisoning and was too ill to finish.

Personal life

Family

Newbery has four siblings: Alastair, Charles, Charlene, and Anne. Mother Jennifer Anne Mundy-Castle was an actress born in Kent, England. She toured with the Dublin Players in until she fell ill in St. Louis. While recovering, she met her future husband Jorge Ernesto Newbery. Great great uncle Jorge Alejandro Newbery was a pioneering aviator and sports hero in Argentina.

Hobbies

An avid runner, Newbery regularly competes in distance races and has run over 40 marathons and ultra-marathons since 1999. Recent race results as of late 2009 include:

External links