Standard Communities Extends Rent Conversion Spree in SoCal
It’s the firm’s fifth project of this kind in Southern California in less than 12 months
By Greg Cornfield July 16, 2021 9:55 amreprints
As California watches its years-long housing crisis persist with no clear end in sight, one firm has led the way this year in addressing the gluttony of luxury apartments, while also putting a dent in the lack of affordability.
Standard Communities announced yet another public-private partnership that acquired a newly constructed, high-end multifamily property to convert into workforce housing. This time, the firm returned to L.A.’s South Bay and bought the Union South Bay Apartments — a 357-unit community at 615 East Carson Street in the city of Carson, Calif. Rental rates will be immediately adjusted for residents earning between 80 percent and 120 percent of the area median income.
The property was completed last year with two five-story buildings, as well as more than 28,000 square feet of retail space, a fitness center, a rooftop deck, and a pool. The total capitalization of the project — which includes the purchase price, renovation costs, attorney fees, insurance, financing, compliance, and more — is more than $220 million.
“Housing costs have soared, with rents often consuming up to 50 percent of a family’s income,” Jeffrey Jaeger, co-founder of Standard Communities, said in a statement.
Standard will serve as project administrator. The California Statewide Communities Development Authority (CSCDA) now owns the property.
This is Standard’s second multifamily transaction in Carson in six months. In December, Standard led the same partnership that acquired Renaissance at City Center in Carson.
At the end of June, the same team acquired a 143-unit luxury community called The Link Apartments in Glendale, and in March, the group acquired the 239-unit Foothill Villas Apartments in San Bernardino.
Standard’s portfolio now includes approximately 4,000 units throughout California.
Gregory Cornfield can be reached at email@example.com.