By Meghan Hall
Catalyst Housing Group and CalCHA, two organizations on a mission to preserve California’s affordable housing stock, have struck a deal to buy another Bay Area apartment complex. At the end of July, Catalyst and CalCHA issued $221 million in bonds to purchase the Fountains at Emerald Park apartment complex in Dublin, Calif. The property was purchased from Equity Residential.
The property is located at 5095 Haven Place. The project consists of 132 one-bedroom units, 144 two-bedroom units and 48 three-bedroom units. Onsite amenities include covered parking, pool and spa, fitness center and grilling station. Individual units are equipped with granite countertops and stainless steel appliances, fireplaces and washers and dryers.
Currently, the property is operated as a 100 percent market-rate development, according to a public meeting agenda for CalCHA. However, throughout the course of its ownership, CalCHA will impose income and rental restrictions, catering those who earn between 60 to 120 percent of area median income. Residents will also benefit from caps on rental rate increases, and a non-displacement policy will allow residents to remain as long as necessary.
“It is anticipated that the project’s affordability will continually increase over time as growth in area market-rate rents continually outpaces the project’s restricted rents,” documents state.
In order to finance the project, CalCHA entered into a trust indenture with Wilmington Trust. The bonds issued will be unrated, and their proceeds will be used not just to finance the property’s acquisition, but to add deposits into the project fund, fund capitalized interest and fund operating and coverage reserves, among other initiatives. Final maturity of the Bonds will not exceed 35 years, according to public documents.
The acquisition is not Catalyst Housing Group’s and CalCHA’s first. Over the past couple of years, the pair of organizations have partnered to acquire more than 1,200 units across Northern California, amounting to $600 million in municipal bonds issued and sold. All properties are being converted from market-rate to affordable units for middle-income households.
In April of this year, Catalyst and CalCHA acquired two communities in Antioch and Dublin for $231 million. The Aster, also in Dublin, traded for $163 million, or about $520,767 per unit, while Mira Vista Hills sold for $68 million, or about $242,857 per unit.
Across CalCHA and Catalyst’s entire partnership–originally formed in 2019–the organizations have acquired more than $1.3 billion of multifamily communities. The goal, according to both companies, is to address income equality and the middle-income housing crisis through the maintenance and creation of affordable housing stock.