Middleburg, a Virginia-based real estate investment, development and management firm, is spinning off a new company it has dubbed MidHudson to service developers developers who use Department of Housing and Urban Development financing and reduce the amount of equity required for a these projects.

Former Barclays Capital Director Joseph Carroll will be heading the new company as its president and CEO.

"MidHudson will provide a quality solution to address cumbersome reserves for HUD-financed housing developments that simply hasn't existed before. We have been in the position that other HUD developers are in and saw this as an opportunity to streamline the process." Middleburg Managing Partner Chris Finlay said in a statement.

"We are privileged to have Joe Carroll joining us to lead this important new venture. His experience and leadership skills will ensure the success of MidHudson," he added.

Prior to working for Barclays, Carroll worked at Deutsche Bank, Brightwater Capital Management and Bankers Trust.

According to its release, MidHudson will start its foray into the HUD space by working with HUD lenders to educate them on how to employ the yet unnamed financial product that will be the company’s bread and butter.

"The HUD required reserves can be more than 35% of the total equity requirement for HUD financed development projects," Carroll said in a statement. "Our product is a highly cost effective and efficient way to eliminate the dilutive effect of HUD reserves and maximize a project's financial performance."