A joint venture of Langdon Park Capital and Standard Real Estate Investments has acquired an 84-unit workforce housing community in Azusa, Calif. Located in the San Gabriel Valley about 25 miles east of downtown Los Angeles, the property will operate under a long-term affordability structure intended to serve working families.
Newly rebranded Langdon Park on Arrow, the property is part of the joint venture’s strategy of preserving naturally occurring affordable housing in high-cost urban markets. Community Preservation Corp. provided equity capital, and Walker & Dunlop arranged a Fannie Mae acquisition loan.
“The San Gabriel Valley is a high-growth, high-barrier submarket where competition for well-located multifamily assets is intense,” Malcolm Johnson, Langdon Park Capital CEO, told Multi-Housing News.
“Preserving this property as naturally occurring affordable housing required structuring a tax abatement through one of the state’s regulatory authorities.” According to Johnson, that approach is relatively uncommon in the local market and offers significant regulatory and legal complexity.
Aligning public, private stakeholders
The deal brought together multiple public and private partners. Aligning deal terms, governance structures and closing timelines across nonprofit, institutional and public-sector stakeholders “required Langdon Park Capital and Standard to leverage their respective relationships with institutional capital providers and mission-driven foundations,” Johnson said.
An added challenge was the seller’s compressed schedule for closing, which called for “completing diligence, financing and compliance steps in parallel while maintaining alignment among all parties,” he added.
Langdon Park on Arrow features a mix of one-, two- and three-bedroom apartments. The new ownership group plans modest renovations while preserving affordability and minimizing displacement. A June Multifamily Market Report found that while the Los Angeles region’s economy is cooling, asking rents are moving higher.
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