Company to Renovate 75 units on 15 sites in Berkeley
Berkeley, Calif. (February 20, 2014) — Related California, a fully integrated real estate firm that develops affordable and market-rate multifamily and mixed-use residential properties, today announced the acquisition of 75 units in 15 public housing sites from the Berkeley Housing Authority. Through a partnership with the Authority, Related will renovate the units to improve an important component of the City’s inventory of housing for large families.
The transaction closed on February 14, 2014. The total development cost is just under $36 million.
“This project will provide a huge improvement to many of Berkeley’s neighborhoods,” said Lydia Tan, executive vice president of Related California. “With so many families on the waiting list for Section 8 housing, we are able to provide high quality housing options to those in need.”
Renovations will include complete interior renovations with new finishes, appliances and fixtures, plus heating and water systems and upgrades to building exteriors and landscaping. Originally consisting of three- and four-bedrooms units, the rehab includes conversion of some units to two-bedroom and an increase of handicap accessible units to seven, in order to allow more existing residents to remain on site. Construction will begin the last week of February with a target completion of December 2014.
For more than two years, Related California has worked closely with the Berkeley Housing Authority to structure the acquisition, refinance and plans for rehab of the units of public housing currently owned by the Authority. The project’s multiple sites located throughout the city demanded creative approaches to both construction and property management.
“We are pleased to have Related as a partner on this project,” said Carole Norris, chair of the Berkeley Housing Authority Commission. “This was a complicated transaction, and I don’t believe any other company could have so adeptly achieved what Related has. We are thrilled the residents will soon be living in updated homes and that the results will assist the Housing Authority in being able to continue its important mission of serving Berkeley’s low and very low income residents.”
Approved by HUD for disposition by the Housing Authority, the project financing plan includes the use of tax exempt bonds, low-income housing tax credits, local HOME funds, as well as a carry back loan from the Housing Authority.
About Related California
Celebrating its 25th anniversary, Related California is a fully integrated real estate firm that develops affordable and market-rate multifamily and mixed-use residential properties in California. Since opening the west coast headquarters, the company has completed more than 9,500 residential homes throughout California. Related has partnered with over 20 municipalities in Northern California (San Francisco, Oakland, Richmond, San Jose) and Southern California (Los Angeles City, Los Angeles County, Orange County, San Bernardino County, San Diego and San Diego County).
The Related California portfolio includes more than $2.5 billion worth of developments. This level of activity sets the company apart from most in the industry and creates substantial purchasing and negotiating leverage, allowing Related to develop and operate assets efficiently while maintaining its standards of high quality and service. For more information, visit www.relatedcalifornia.com.
About Related Companies
Related Companies is the most prominent privately owned real estate firm in the United States. Formed over 39 years ago, Related is a fully integrated, highly diversified industry leader with experience in virtually every aspect of development, acquisitions, management, finance, marketing and sales. Related has offices and major developments in New York, Boston, Chicago, Los Angeles, Las Vegas, San Francisco and South Florida and boasts a team of more than 2,000 professionals. The Company’s existing portfolio of real estate assets, valued at over $15 billion, is made up of best-in-class mixed-use, residential, retail, office, trade show and affordable properties in premier high-barrier-to-entry markets. For more information, visit www.related.com.