A partnership between Redwood Housing Partners and Hearthstone Housing Foundation has acquired two adjacent affordable senior housing properties totaling 333 units in Orange, Calif., for a total of $160 million, Yardi Matrix data shows. Living Opportunities Management Co. sold the duo, dubbed Community Garden Towers and Garden Tower West.
Berkadia issued a $130 million HUD loan for this portfolio deal, the same source shows. The previous debt that encumbered the two assets consisted of a $36.6 million HUD note issued by PNC Bank in 2017.
The 210-unit, 14-story Community Garden Towers debuted in 1977, four years before Garden Tower West, which consists of 123 apartments across 11 levels. The communities are age-restricted for residents 62 and older, earning up to 60 percent of the area median income.
READ ALSO: A Mission-Driven Senior Housing Redevelopment: Case Study
Both communities secured LIHTC in 2002, having an extended-use expiration date of 2032. Additionally, the duo provides Section 8 vouchers as well. Each property features one-bedroom layouts, with Garden Tower West’s units averaging 584 square feet, while Community Garden Towers’s apartments clock in at 420 square feet.
Located at 3919 and 4001 W. Garden Grove Blvd., the properties are some 3 miles from the Orange Crush interchange, where Interstate 5 and California roads 22 and 57 converge. Downtown Anaheim, Calif., is about 6 miles northwest, while Santa Ana, Calif.’s city center can be found 3 miles southeast.
Weak supply improves senior housing fundamentals
The senior housing sector faces a substantial supply issue, with just 1,400 units coming online during 2025’s third quarter, according to a report by the National Investment Center for Seniors Housing & Care.
With such scarcity, occupancy rose for the 17th consecutive quarter, clocking in at 88.7 percent in September, up 70 basis points compared to the index’s June reading, the same source shows. Rent growth was solid as well, landing at 4.3 percent year-over-year in September.
These potent fundamentals buoyed asset prices, which appeared to be trending higher in June as cap rates slid down 12 basis points compared to December, according to a CBRE survey. Notably, respondents expect cap rates to further ease over the next year, suggesting these senior housing trends aren’t likely to change short term.
The post Exclusive: Senior Affordable Duo Commands $160M in California appeared first on Multi-Housing News.
Gillian Executive Search is a leader in Affordable Housing Development, Financing, Design and Construction recruiting. www.gessearch.com