Waterford Property Company and a state joint powers authority are still on a shopping spree, picking up another large apartment complex for conversion into middle-income housing.
The Newport Beach-based firm bought a 265-unit apartment complex in Anaheim’s Platinum Triangle for $127 million through its partnership with the California Statewide Community Development Authority. The new owners plan to convert apartments into middle-income housing, according to an announcement on Wednesday.
Colorado-based REIT UDR sold the property at 1818 South State College Boulevard, after owning it for over 10 years, records show. UDR did not respond to a request for comment.
The buy marks Waterford’s ninth acquisition with the authority. The deal is part of a workforce housing program set up by the CSCDA last year to address California’s so-called “missing middle” housing issue – a bid to keep rents in line with middle-class incomes. The acquisitions are financed through tax-exempt bonds.
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Waterford will immediately lower rents at the complex for new residents who qualify for an apartment — they will have to make between 60 and 120 percent of the area’s median income. The median household income was $71,763 from 2015 to 2019, according to U.S. census data.
Annual rent increases at the complex will also be capped at 4 percent. People currently living at the complex who do not meet the income restrictions will not be forced to move, the firm added.
It’s not Waterford’s first purchase in Anaheim’s Platinum Triangle — a one-time industrial district near Angel Stadium that has been undergoing a large-scale redevelopment into a residential neighborhood.
In February, Waterford and the CSCDA bought the 400-unit Jefferson Platinum Triangle complex from JPI for $160 million and immediately lowered rents.
The Anaheim City Council voted 7-0 last month to approve Waterford’s latest acquisition, with council member Trevor O’Neil emphasizing the need for more housing for middle-income earners.