The Pacific Cos. will build an affordable housing project encompassing 275 units in metro Los Angeles. The developer closed on a ground lease with Safehold for the development, which has a completion date set for 2029.
Public records show The Pacific Cos. is seeking approval for the allocation of tax credits for a property matching the development’s description in Reseda, Calif. Safehold did not immediately confirm that this is the asset in question.
Dubbed Twin Park Landing, the project will comprise two buildings consisting of one-bedroom units. Development costs are expected to rise north of $127 million.
Last December, The Pacific Cos. applied for $6.4 million in annual 4 percent LIHTC, as well as $68 million in tax-exempt bonds. The community will cater to residents earning at or below 30, 50, 60 and 70 percent of the area median income.
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Located at 6670 Reseda Blvd., the site is roughly 22 miles northwest of downtown Los Angeles, within walking distance of two parks, a lake, as well as more than 300,000 square feet of retail space.
Safehold aims to assist developers by simplifying the affordable housing capital stack by replacing potential debt tied to land acquisitions with ground leases instead. Since its inception in 2017, the company has closed on $6.8 billion worth of deals.
The Pacific Cos.’ collaboration with Safehold extends beyond this latest project. In July, the two inked an agreement for the construction of a 227-unit development in San Diego, while last year, the duo shook hands on four such endeavors, totaling 781 units throughout California.
Affordable deliveries keep up the pace in LA
Metro Los Angeles’ construction pipeline included more than 8,000 units in October, accounting for more than 29 percent of the total, according to Yardi Matrix data. A total of 3,500 affordable units were delivered year-to-date through October, representing 36.2 percent of all housing completions in the market in that period.
Ground-up development isn’t the sole method developers use to bring income-restricted units online. Last month, Linc Housing converted a market-rate property into an affordable one, which encompasses 127 apartments.
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