The public-private partnership between Standard Communities and Pacific Southwest Development Corp. acquired six fully affordable communities, encompassing 407 units, in Los Angeles County. The transaction has a total capitalization of approximately $122 million.
Goldrich & Kest sold the properties, according to Yardi Matrix data. Pacific Southwest Development Corp. drew an undisclosed amount from a $105.5 million Fannie Mae line of credit, originated by CBRE Capital Markets, the same source shows.
Built between 1969 and 1980, five out of the six properties are senior affordable housing. The new owners will preserve the Section 8 affordability and extend it for 20 years, under new HUD Housing Assistance Payments contracts. The partners plan to commence a renovation process estimated at $8 million.
The fully affordable properties are:
- Oxford Park, a 109-unit senior housing community located at 1920 South Oxford Ave.
- Rayen Park, an 84-unit senior housing community located at 15247 Rayen St.
- Sherman Arms, a 74-unit senior housing community located at 17760 Sherman Way
- Villa Marisol, a 48-unit senior housing community located at 5301 Via Marisol
- Columbus Terrace, a 42-unit senior housing community located at 8606 Columbus Ave.
- Villa San Dimas, a 50-unit multifamily community located at 249 S. Acacia St.
A diverse affordable portfolio
Goldrich & Kest sold Oxford Park for $24.9 million, according to Yardi Matrix data. Completed in 1971, the community encompasses four buildings with one-bedroom apartments averaging 587 square feet. Residents have access to 109 parking spaces.
Villa San Dimas comprises 10 buildings on a 2-acre site. Common-area amenities include a clubhouse, two laundry facilities, outside storage and covered parking. The 1980-built property incorporates two-, three- and four-bedroom floorplans ranging between 850 and 1,225 square feet.
Built in 1976, Sherman Arms is in an Opportunity Zone. The three-story building features a clubhouse, laundry facilities, elevators and around 80 parking spaces.
The fully affordable and age-restricted Rayen Park community encompasses six two-story buildings on a 2-acre site. The property is near Interstate 405, which provides easy access across the Los Angeles metropolitan area.
Standard Communities’ Co-Founder and Principal Jeffrey Jaeger stated in prepared remarks that the acquisition brings the company’s portfolio in the Los Angeles County to over 1,700 units.
In March, Standard Communities expanded its footprint in other regions as well, purchased a controlling interest in a southeastern U.S. affordable housing portfolio. That transaction included nearly 3,200 units throughout Florida and Georgia.
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