Concord Apartments Trade With Affordable Conversion in Mind

A pair of Concord apartment complexes have traded with the goal to convert them into affordable housing units. Hayward-based nonprofit Eden Housing acquired the properties for $37 million, according to CBRE, which brokered the deal.

Eden purchased the Sunset Pines from Oakland-based Rubenstein Capital for $22 million and Coral Court Apartments from Oakland investor Gerald Friedkin for $15 million, according to public records. The properties are located at 1770 Adelaide Street and 1491 Detroit Avenue, and have 69 and 47 units respectively. Eden was able to secure $6 million in funding from the city to help with the purchase.

Both the Adelaide and Detroit properties sold for a per unit cost of about $319,000.

While Concord is more affordable than other markets in the Bay Area, it still grapples with the region’s affordable housing shortage. The average rent in the city for one-bedroom is $1,950, which is a 6 percent increase since a year ago, according to data collected by Zumper. There are currently 18 units available and rents are at a 2023 high. The average rent for a two-bedroom is $2,300, a 1 percent decrease from a year prior, and a three-bedroom comes in at $3,200, a 7 percent increase.

Rents have increased in the East Bay in general, reaching $2,700 for a one-bedroom in the second quarter, according to a report by brokerage Marcus & Millichap. That represents a 5 percent increase from the second quarter of 2022. Hybrid work trends continue to shift Bay Area employees to the suburbs and less dense markets such as Concord.

“Hybrid work options and inflationary pressures on household budgets have hindered apartment demand in the urban core for the near-term, with more residents shifting to places like Walnut Creek-Lafayette, San Ramon-Dublin and Fremont,” the report said. “These settings offer access to high-quality schools and public transit that still allows for timely commutes into urban locales across the Bay Area.”

Eden isn’t the only nonprofit looking to acquire properties with affordable housing in mind. A nearly 200-unit building under the Avalon Communities umbrella was acquired by Bridge Housing for $66 million, with the goal to preserve affordable housing units at the Daly City property.