Century Housing acquired CityView apartments in the Wrigley neighborhood of Long Beach for $ 66.5 million. The multi-family community of 296 homes is home to seniors earning less than 60% of the region’s median income.
Century Housing acquired the property using an offering of tax-exempt guaranteed real estate bonds with no volume caps in combination with an unsecured tax-exempt bond placed by a private, rated AA, which is a rare method of raising capital. The rest of the capital stack included the issuance of two separate but coordinated 501 (c) 3 bond sales: a $ 48 million public execution with Wells Fargo as underwriter and a $ 21 million private placement. in favor of Barclays through the US Bank as underwriter and placement agent. Century says this buying structure will help keep rents affordable, preserving low-income housing for nearly 300 seniors.
The acquisition also aligns with Century Housing’s ESG initiatives. The two bonds placed on the property carry an ESG opinion from Sustainalytics. The property is part of Century’s strategy to develop large-scale green housing, according to the company.
CityView apartments were renovated in 2015. Major upgrades included a cool new roof, new windows, Energy Star refrigerators, HVAC upgrades, and LED lighting installation. The property’s amenity package includes a community hall, fitness center, library, tech center, laundry facilities with televisions, game tables, elevators, surveillance cameras, controlled access entrance and a roof terrace with a barbecue area.
Events of the past two years have focused on investing in affordable housing, which has resulted in an increase in transactions. Also in the Los Angeles metro area, the Waterford Property Company and the California Statewide Community Development Authority have teamed up to to acquire Residences at Westgate, a 480-unit affordable apartment community in Pasadena, for $ 280 million from Equity Residential. This is the fourth property in Waterford’s affordable housing portfolio in Pasadena. He will serve as the project administrator for the property.
Similarly, in November, The Rose Affordable Housing Preservation Fund V of Jonathan Rose Companies acquired the Kings Villages Apartments in Pasadena for $ 223 million. The property consists of 313 LIHTC units and regulated by HUD Section 8 and Section 42 LIHTC. The fund closed the acquisition in record time, reflecting the looming need for affordable housing in Southern California.