Belveron Partners Buys Two Affordable Housing Complexes in SoCal
In its first foray into Southern California, one of the country’s largest owners of affordable housing has bought two multifamily properties for more than $60 million.
Belveron Partners announced on Thursday that it had purchased Presidio Park Apartments in Santa Barbara for $23 million and Pacific Terrace Apartments in Midway City in Orange County for $37.25 million. Both properties are Section 8 housing developments and were financed by Fannie Mae (FNMA) loans originated by Capital One (COF).
Presidio Park, at 420 East De La Guerra Street, is a 50-unit, two-story, garden-style apartment building. Pacific Terrace, at 15000 Pacific Street, consists of 98 units and specifically caters to seniors.
“The City of Santa Barbara looks forward to partnering with Belveron Partners, the new owner of Presidio Park Apartments, in enabling a substantial renovation with many upgrades to the property, along with ensuring affordability to low-income residents for decades to come,” said Elias Isaacson, Santa Barbara’s community development director.
The Foundation for Affordable Housing, a network of nonprofits that have helped develop and operate more than 150 affordable housing communities in California, partnered with Belveron for the sale. A spokesperson for Belveron said the firm will extend the existing Section 8 contract with the U.S. Department of Housing and Urban Development for an additional 20 years beyond the current term.
In addition to appointing new property managers for both buildings, Belveron also plans to invest $30,000 in renovations per unit.
The purchase is Belveron’s first in Southern California, although the San-Francisco based firm has made significant purchases on the East Coast in recent years. In 2020, Belveron and Camber Property Group together purchased an affordable housing portfolio in Flatbush, Brooklyn, for $90 million, as well as a portfolio in the Bronx for $166 million, according to The Real Deal.
Nick Trombola can be reached at NTrombola@commercialobserver.com.