Los Angeles — Standard Communities, a major affordable housing investor and developer, has led a public-private partnership to acquire three affordable senior mixed-income housing communities totaling 559 rental units in California.
The total capitalization of the three-property portfolio is over $195 million, including more than $19 million in renovations.
Standard Communities acquired:
- Heritage Village Anaheim: 196 units on 5.10 acres at 707 West Santa Ana Street in Anaheim (sold for $64 million, or $326,530 per unit, according to public records)
- Heritage Park Escondido: 196 units on 4.95 acres at 549 East Valley Parkway in Escondido (sold for $72 million, or $367,346 per unit, according to public records)
- Heritage Park Livermore: 167 units on 8.17 acres at 1089 Bluebell Drive in Livermore (sold for $50 million, or $299,401 per unit, according to public records)
“We believe housing is a pathway to human prosperity. We’re preserving and expanding affordable housing in some of the areas that need it most in California,” said Jeffrey Jaeger, Co-Founder and Principal of Standard Communities. “Seniors are the fastest-growing population in California and Standard Communities is proud to be a part of the solution to meet their increasing demand for quality affordable rental housing.”
“In the city of Livermore for example, almost 20% of the population are seniors and 24%of them are renters. The average price of a home in Livermore is over $1 million, which has increased nearly 30% year over year. It’s important to Standard to provide affordable housing options for seniors. Our investments help to strengthen the economic and social fabric of communities,” said Joon Lee, Standard’s Managing Director of Strategic Capital.
Standard’s improvements at the three Heritage communities will consist of plumbing, HVAC electrical, fire safety and security upgrades, roof, door and window repair or replacement and re-painting of buildings. Common areas and amenities will be renovated and upgraded, and units will receive new kitchen cabinets with energy-efficient appliances, bathroom renovations and new flooring.
“We are excited to add these properties to our rapidly expanding Essential Housing portfolio and will continue to look for affordable housing preservation and conversion opportunities nationwide,” said Chris Cruz, Managing Director of Essential Housing at Standard Communities.
“Our team is focused on innovative ways to create and preserve affordable housing units outside of the federal LIHTC program. There is extraordinary demand for this asset class from first-class institutional investors, and Standard Communities is proud to be a steward of capital for those seeking exposure to the affordable housing arena,” added Mr. Cruz.
Standard Communities completed the Heritage transaction in partnership with the non-profit Housing on Merit and an institutional joint venture equity partner.
In the last 12 months, Standard’s Essential Housing group has helped facilitate the conversion of over 1,750 units in California and is expanding its efforts nationwide, with a focus on coastal markets and the mountain regions.
Based in Los Angeles and New York, Standard has a national portfolio of over 14,100 apartment units and has completed more than $3.8 billion of affordable housing acquisitions and rehabilitations nationwide. Standard Communities strives to cultivate long-term public and private partnerships to produce and preserve high-quality, affordable, and environmentally sustainable housing.