Catalyst Housing Group is continuing to expand its transformative middle-income Essential Housing model across the state, with the acquisition of two multifamily housing communities in Southern California and its fifth property in Northern California, the Creekwood Apartments in Hayward, for which the company paid $128,750,000, according to industry sources, or roughly $416,666 per unit.
The seller was Bridge Development Group.
The transactions, completed in partnership with the California Community Housing Agency (“CalCHA”), and totaling over $525 million, will permanently transition the currently market-rate properties into rent-restricted housing serving the “missing middle” – those who earn in excess of traditional affordable housing limits yet struggle to afford market-rate housing.
“Catalyst is a mission-driven organization focused on affordably and sustainably housing our essential middle-income workforce,” said Jordan Moss, Founder of Catalyst Housing Group. California will increasingly struggle to have fully functioning communities if we cannot produce opportunities to house our nurses, teachers, first responders and civil servants directly within the communities they serve.”
The Creekwood Apartments in Hayward add to CalCH’s growing Northern California portfolio. The 309-unit community will undergo substantial renovations focused on curing deferred maintenance, modernizing building systems, creating tech-forward smart home units and enhancing common area amenities, all while significantly reducing rents for middle-income households.
“The partnership between the City of Hayward and Catalyst protects current tenants of the 309 unit building from the displacing effects of large rent increases and will maintain affordable rental opportunities for households that are low and moderate income,” said Kelly McAdoo, City Manager for the City of Hayward. “Our region is in the midst of a housing crisis, and this is an immediate and real solution to lock in pricing to ensure that Hayward community members can stay housed in Hayward.”
Founded in 2015, Catalyst fosters innovative solutions to address California’s growing income inequality and the related middle-income housing crisis. Its Essential Housing model has spawned the creation of three state agencies and the production of more than 4,000 rent-restricted housing units over the past two years. Catalyst’s non-profit arm, the Essential Housing Fund, provides rent subsidies to public school teachers, while its Catalyst Innovation Lab pilots and scales modern solutions, tools and partnerships that drive operating margins, building efficiencies and portfolio sustainability.