Ocean View Senior Apartments in Pacifica is a 100-unit apartment complex that has been owned by the National Church Residences for the past 15 years. The Columbus, OH -based non-profit purchased the asset in August of 2000 for $11,220,000, or roughly $112,200 per unit. This week, San Francisco-based Bridge Housing announced that it had purchased the asset for $19 million or approximately $190,000 per unit.[contextly_sidebar id=”NAU60gmO3OE0wt0CNflu01nAZhQtgOaZ”]Over those 15 years of ownership, National Church Residences had worked hard on sustaining the property’s affordability while at the same time maintaining high-quality property management practices. Recently, National Church has been pursuing refinancing alternatives in order to repay two maturing loans and address capital needs.
“We determined it was in the best interest of the Ocean View community to engage a mission-minded partner like ourselves with the local presence needed to execute new financing terms and oversee the rehabilitation,” said Steve Bodkin, Chief Operating Officer, Housing, National Church Residences in a prepared statement. The organization found that partner in Bridge Housing, a leading non-profit developer, owner and manager of affordable housing headquartered in California.
“We are delighted to have partnered with National Church Residences during this transition,” said Cynthia A. Parker, President and CEO of Bridge in a statement. “Ocean View provides much-needed housing for seniors in Pacifica, and we look forward to keeping it that way for the next 55 years.”
The purchase price, which included assumption and repayment of outstanding debt, totaled $19 million. As a condition of the financial restructuring, National Church Residences, as former owner, received $200,000 that will benefit low-income residents of San Mateo County.
With the new financing in place, which includes tax-exempt bonds, funding provided through California Housing Finance Agency, restructuring of existing debt with the San Mateo County and the Housing Endowment and Regional Trust (HEART), along with the addition of low-income housing tax-credit equity, Bridge will start renovations next month. These will include replacing of aging building elements and systems while also restoring and enhancing the physical condition of the building. The recapitalization will also provide funding to enhance on-site wellness and nutrition services.
Current residents will remain in the units, and deed restrictions have been enacted to ensure the rent restrictions continue for 55 years. Ocean View is affordable to seniors whose annual incomes range from approximately $14,928 to $84,500 (minimum income standard to 80 percent of Area Median Income, depending on household size), though 31 apartments will have additional subsidy provided by the Housing Authority of the County of San Mateo to serve people with lower incomes, according to a statement provided by Bridge.
Bridge Housing Corporation was formed in 1983 with a major anonymous grant given to the San Francisco Foundation to spearhead new solutions to the worsening shortage of affordable housing, states the organization’s Web site. Today, it is the nation’s top non-profit developer of affordable housing having participated in development of over 16,000 homes that sever more than 40,000 people.