2 Orange apartment complexes pivoting to affordable workforce rents – Orange County Register
More workforce housing is coming to Orange County, this time to Orange.
Newport Beach-based Waterford Property Co., in partnership with California Statewide Community Development Authority, has bought two apartment complexes with 356 total units in Orange for $206 million.
The deal included Cameo, a 262-unit complex at 1055 W. Town and Country Road, for $149 million, and Garrison, a 94-unit complex at 1725 West Katella Ave. for $57.05 million.
Related: How a workforce rent program aims to plug ‘missing middle’ housing gap
The complexes will be converted to affordable housing for middle-income workers earning between $56,000 and $134,000.
Waterford, as administrator, and the CSDA will begin lowering rents for qualified new residents making between 60{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} to 120{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of the area median income. The firm estimates an average rental savings of 12{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} for qualified tenants.
“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, the co-founder of Waterford.
The Orange City Council voted 7-0 on Aug. 10 to approve the acquisitions.
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 billion of tax-exempt bond issuances.
Orange County has six workforce housing projects already in use. Another project is being reviewed by the city of Costa Mesa. With the two Orange complexes, the county could soon have nine such housing projects altogether.
Under a new law signed Sept. 28 by Gov. Gavin Newsom, California cities and counties will be able to count these middle-income apartment conversions toward their affordable housing quotas.
Assembly Bill 787 is expected to incentivize local governments to adopt the affordable housing program more readily.
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.
Trio of SA buildings sold to CenterPoint
Illinois-based CenterPoint Properties has bought a three-building industrial park at 2721 S. Harbor Blvd. in Santa Ana.
The company declined to reveal what it paid for the complex.
“The opportunity to acquire scale of quality product in an infill market like Orange County is extremely rare,” said Evan Lippow, CenterPoint Properties’ senior vice president of investments.
The distribution property has a combined 400,000 square feet on 20 acres.
Rob Socci from Voit Real Estate Services and John Griffin from Cushman & Wakefield brokered the transaction.
2 warehouse complexes underway in Chino
An array of new warehouses are coming to two complexes under construction in Chino.
Newport Beach-based Alere Property Group is developing the sites, Euclid Industrial Park and Chino Commerce Park, which should be complete by 2022.
The 18.6-acre Euclid Industrial Park at the corner of Bickmore Avenue and Euclid Avenue will include a combined 360,000 square feet in eight warehouses ranging in size from 13,050 to 206,118 square feet. The complex will be fronted by six smaller industrial buildings along Euclid Avenue. Two larger buildings — 206,118 square feet and 49,640 square feet — will be along the rear of the site, Alere said.
Wall tilt-up is slated for October with overall construction complete by late-summer 2022.
The 13-acre Chino Commerce Park at the corner of East End Avenue and County Road will have four buildings in 266,348 square feet. It will be anchored by a 210,747-square-foot distribution warehouse. The other buildings will range in size from 15,104 to 25,177 square feet. Slabs have been poured and the project should be done by May, the firm said.
Alere, which owns 20 million square feet of industrial facilities in the Inland Empire, is also working on a 211,000-square-foot industrial warehouse 656 S. Cucamonga Avenue in Ontario and a 150,000-square foot warehouse in Fontana.
Koll makes a killing in 2 Southwest sales
The Koll Co. in Irvine has sold two industrial parks in Nevada and Arizona for nearly twice what the firm originally paid.
The firm bought the 175,818-square-foot AmPac Industrial Park in Henderson, Nevada, in 2019 for $21.2 million and sold it for more than $42 million. The complex has 41 tenants.
In Tempe, Arizona, Koll bought the 58,000-square-foot Broadway Industrial Park in 2019 for $7.47 million and sold it for more than $13 million. The property has two tenants.
“What made these deals possible is the combination of implementing our in-house management expertise, strategic capital improvements and market knowledge of the leasing teams we partnered with for each property,” said Scott Meserve, a principal at The Koll Co.
CBRE, Darla Longo and Rebecca Perlmutter, partnered with Koll to sell the AmPac property.
For the sale of Broadway Industrial Park, Koll partnered with Cushman & Wakefield, Will Strong and Phil Haenel.
Real estate transactions, leases and new projects, industry hires, new ventures and upcoming events are compiled from press releases by contributing writer Karen Levin. Submit items and high-resolution photos via email to Business Editor Samantha Gowen at [email protected]. Please allow at least a week for publication. All items are subject to editing for clarity and length.
