BLDG Nabs Enclave Apartments for $129M, Converting to Workforce Housing
By Greg Cornfield February 2, 2022 7:30 pm
reprints
BLDG Partners (BLDG) announced that it’s flipping the rent at an apartment complex in the southern region of Los Angeles County.
The Beverly Hills-based development and management firm teamed with California Municipal Finance Authority (CMFA) to acquire the 306-unit Enclave Apartments in Paramount, Calif., for $128.5 million. With a yearslong affordable housing crisis and rents expected to continue to rise throughout the region, rents will be lowered for residents earning between 80 to 120 percent of the area median income.
It’s the second big acquisition and rent conversion for BLDG and CMFA together in Southern California so far in 2022.
“The city of Paramount has been a committed partner in our efforts to preserve and expand the supply of low- and middle-income housing,” Guy Penini, principal of BLDG, said in a statement. “With this transaction, Paramount will be able to ensure the availability of attainably priced, quality housing for the long term.”
Records show Enclave at 13801 Paramount Boulevard was owned by Sherman Oaks-based MWest Holdings, which acquired the property for $99.3 million in December 2019 with the help of a $76.3 million loan from PCCP.
In late January, BLDG and CMFA purchased the 282-unit Allure Apartments in the city of Orange, Calif., with the same rent conversion strategy. The moves mirror Standard Communities and Waterford Properties, which have made similar sized acquisitions and lowered rents at multifamily properties throughout the county over the past two years.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
