Standard Communities Buys 559 Senior Housing Units in California – Commercial Observer
Affordable multifamily investor and developer Standard Communities is growing its footprint after acquiring three California senior housing communities with 559 rental units.
The total capitalization is over $195 million, including more than $19 million in renovations, the firm announced. The deal includes 196 units in Anaheim, 196 units in San Diego County, and 167 units on the east side of the Bay Area.
“We’re preserving and expanding affordable housing in some of the areas that need it most in California,” Jeffrey Jaeger, co-founder of Standard Communities, said in a statement. “Seniors are the fastest-growing population in California, and Standard Communities is proud to be a part of the solution to meet their increasing demand for quality affordable rental housing.”
Property records show the communities acquired by Standard were owned by Denver-based AIR Communities.
The Heritage Village Anaheim is on more than five acres at 707 West Santa Ana Street in Anaheim, and records show it traded for $64 million, or about $326,531 per unit. Heritage Park Livermore is on more than eight acres at 1089 Bluebell Drive in the city of Livermore outside of San Francisco, and Heritage Park Escondido is on almost five acres at 549 East Valley Parkway in the city of Escondido in Southern California.
Joon Lee, managing director at Standard, said Livermore is home to a population made up of almost 20 percent seniors, and 24 percent of them are renters.
“The average price of a home in Livermore is over $1 million, which has increased nearly 30 percent year over year,” Lee said. “It’s important to Standard to provide affordable housing options for seniors.”
Standard’s improvements at the three communities will include upgrades to plumbing, HVAC electrical, fire safety and security, as well as general repairs. Common areas and amenities will be renovated and upgraded, and units will receive new kitchen cabinets with energy-efficient appliances, bathroom renovations and new flooring.
In the last 12 months, Standard has helped facilitate the conversion of more than 1,750 units in California and is expanding nationwide, with a focus on coastal markets and the mountain regions. Chris Cruz, managing director at Standard, said the firm will continue to look for affordable housing preservation and conversion opportunities around the U.S.
“There is extraordinary demand for this asset class from first-class institutional investors, and Standard Communities is proud to be a steward of capital for those seeking exposure to the affordable housing arena,” Cruz said.
Standard has a national portfolio of over 14,100 apartment units and has completed more than $3.8 billion of affordable housing acquisitions and rehabilitations nationwide.
Gregory Cornfield can be reached at email@example.com.