A pair of Southern California developers picked up a fourth Bay Area apartment complex to convert to affordable housing.
Irvine-based Integrity Housing and Beverly Hills-based Ascenda Capital paid $31.6 million for The Lakes, a three-building, 102-unit apartment complex at 1818, 1819 and 1850 Laguna Street in the East Bay city of Concord, the San Francisco Business Times reported.
It’s the latest in a string of Bay Area deals for Ascenda and Integrity, who in the last month alone have spent more than $145 million on multifamily assets in the region.
The developers recently bought the 146-unit Metro 77 & 85 Apartments at 77 and 85 Estabrook Street in San Leandro for $52.9 million; the 65-unit Three21@Belmont at 301-321 Oxford Way in Belmont for $27.5 million; and the 89-unit Andina Apartments at 1180 and 1182 East Street in Hayward for $33.5 million.
The California Municipal Finance Authority issued tax-exempt bonds to finance the four purchases. CMFA approved up to $40 million for the purchase of The Lake and up to $155 million for the other three. Some of the financing for the Concord property will go toward rehabilitation, including renovating the pool and lounge areas as well as the residential units.
Of the recently purchased buildings, 75 percent of the units at Andina, Three21@Belmont and Metro 77 & 85 and 100 percent of the units at The Lakes will be converted into affordable housing, yielding 328 affordable units in total.
Developers in the area have generally failed to keep up with demand for affordable housing, including nearby which has added 5,057 units of affordable housing since 2014, far short of its goal of 21,000 set by the Association of Bay Area Governments. This week, city leaders agreed to cut fees for developers who provide affordable housing, as long as they are paid in full prior to construction.
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