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9/28/21
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Waterford Property Company has teamed up with California Statewide Community Development Authority (CSCDA) in the acquisition of two multifamily properties in the City of Orange, totaling 356 units.
The acquisitions include Cameo, a 262-unit multifamily community located at 1055 W. Town and Country Rd, for $149 mil and Garrison, a 94-unit multifamily community located at 1725 West Katella Ave for $57.05 mil. These communities will provide housing affordability to the state’s “missing middle income” demographic which is comprised of households earning between $56,000 and $134,000.
Upon taking ownership, Waterford, as administrator, and CSDA will immediately lower rents for qualified new residents making between 60% to 120% of the area median income (AMI). Waterford anticipates average rental savings of 12% for qualified tenants leasing at these Orange properties.
“California has a housing crisis. Our nurses, teachers, librarians, first responders and civil servants earn too much to qualify for traditional affordable housing yet not enough to live in the communities they serve. This negatively impacts the state’s economy and leads to increased congestion, crime, pollution, poor student performance and social unrest,” said Sean Rawson, co-founder, Waterford.
The Orange acquisitions mark Waterford’s seventh and eighth multifamily acquisitions in partnership with CSCDA. Waterford’s Essential Housing portfolio now totals 2,378 units and over $1.45 bil of tax exempt bond issuances.
As one of California’s most active providers of essential housing, Waterford has seen tremendous success implementing affordability restrictions in its communities. For example, at Oceanaire, the third property acquired by Waterford and CSCDA, Waterford notes that the average unit leased under this essential housing program is saving 18.7% on rent when compared to current market rents or approximately $7,189.79 of household savings per year.
“The ‘missing middle’ is the most difficult segment of the population to provide housing for because it is a high barrier to entry price point that makes the financial feasibility of producing new units extremely difficult. With this program we are able to acquire market rate assets and convert them to workforce units immediately. To put this into context, in less than a year we have converted nearly 2,500 units to workforce housing. In comparison, it typically takes three to four years to develop the same number of units,” said John Drachman, co-founder, Waterford. “The opportunity to make an immediate impact is what makes this program so transformative at a time when apartment rents are only on the rise.”
For the Cameo transaction, Joseph Smolen, Geoff Boler, and Lee Redmond of Eastdil Secured represented Waterford. The seller was Toll Brothers. For the Garrison transaction, Waterford was represented by Tom Moran of Berkadia. The seller was BMV Marble LLC.
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