Standard Communities Buys Six Affordable Housing Properties in Los Angeles for $106M
By Nick Trombola September 26, 2023 5:11 pm
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Standard Communities has greatly expanded its affordable housing portfolio across Los Angeles County with a new nine-figure acquisition.
The company purchased six Section 8 properties, totaling nearly 370,000 square feet, from Los Angeles-based real estate firm Goldrich Kest to the tune of $106.4 million. Dean Zander, Stew Weston, Tim Flint and James Flinn of CBRE (CBRE) brokered the sale.
The portfolio consists of the 42-unit Columbus Terrace at 8606 Columbus Avenue in North Hills; the 84-unit Rayen Park at 15247 Rayen Street in North Hills; the 74-unit Sherman Arms, at 17760 Sherman Way in Reseda; the 109-unit Oxford Park at 1920 South Oxford Avenue near Koreatown; the 48-unit Villa Marisol at 5301 Via Marisol in Monterey Hills; and the 50-unit Villa San Dimas at 249 South Acacia Street in San Dimas.
Standard plans to implement $8 million in renovations across the properties, according to the company. Rayen Park, Sherman Arms, Oxford Park, Villa Marisol and Villa San Dimas are senior affordable housing communities, while Columbus Terrace is not an age-designated community.
“The high demand for affordable rental housing in Los Angeles has created enormous investor interest in this specific product,” Zander said in a statement. “Occupancy rates are near historical highs with little sign of easing in the future due to the lack of new product in the pipeline.”
Standard partnered with the nonprofit Pacific Southwest Development Corporation to manage the properties. Standard also plans to extend the affordability of the properties by 20 years via new Housing Assistance Payment contracts from the U.S. Department of Housing and Urban Development (HUD).
“Public-private partnerships play a pivotal role in addressing the need for affordable housing,” said Christopher Cruz, managing director at Standard Communities. “Our partnership with HUD and Pacific Southwest Development on this transaction allows us to preserve hundreds of affordable homes across Los Angeles County.”
Standard is one of the largest owners of affordable housing in the U.S., with nearly 18,000 units across 16 states and Washington, D.C., and has completed more than $4 billion of affordable and workforce housing developments, acquisitions and rehabilitations nationwide, according to the company.
Standard last year bought a 244-unit luxury multifamily complex in South Gate, Calif., for $130 million. Zander and Weston also facilitated that purchase, along with Standard’s 2021 acquisition of 349-unit Monterey Station in Pomona, Calif.
Nick Trombola can be reached at NTrombola@commercialobserver.com.
