180 Solano County apartments sold for $70 million to East Bay middle-income housing fund
An East Bay real estate investor that specializes in repositioning market-rate apartments to be affordable to middle-income families acquired a 180-unit Solano County property for $70 million.
Danville-based Opportunity Housing Group, an affiliate of a multifamiliy and commercial property developer and investor, worked with California Statewide Communities Development Authority to acquire Waterscape Apartments at 3001 N. Texas St. in Fairfield through the agency’s workforce housing program, the group announced Thursday.
Those apartments, previously leased at market rates, will have rents reduced to be affordable to low- to moderate-income individuals and families, the group said. It anticipates that the majority of current residents will qualify for the agency’s program, entitling them to rent savings of $140–$263 a month below current market rates.
“Our innovative workforce housing program provides housing for the essential workers in our cities, which is a demographic that is consistently overlooked both in traditional market-rate and affordable housing development.” said Lauren Seaver, President of OHG. “Providing high-quality housing at reasonable rents is one of the biggest challenges facing the Golden State today.”
Typically the “missing middle” is defined as households that make too much to qualify for subsidized units but not enough to afford market rents. Such workers are teachers, first responders and civil employees.
California Statewide Communities Development Authority was founded in 1988 by the California State Association of Counties and the League of Calfornia Cities as the conduit for issuing tax-exempt bonds to fund projects. The agency says it has issued more than $65 billion in bonds for over 90,000 affordable units so far.
Opportunity Housing Group is acting as the administrator of the Waterscape acquisition.
A similar organization, California Community Housing Agency was started by Kings County several years ago to fund housing acquisitions through such bonding. Larkspur-based Catalyst Housing Group has completed over $2 billion in acquisitions of more than 4,000 units through that agency.
Waterscape Apartments has a swimming pool, spa. picnic area with barbecue grills, outdoor fireplace with lounge seating, clubhouse, business center, fitness center, playground, dog park, gated access and 326 open, covered and garage parking spots.
The property seller is a joint venture between Angelo Gordon and Glencrest Group. The broker is Institutional Property Advisors’ Northern California Team of Salvatore Saglimbeni, Philip Saglimbeni, Stanford Jones and Alex Tartaglia.
Opportunity Housing Group was founded by the principals of Blake Griggs Properties, which previously in the North Bay worked on the Marin Gateway shopping center in Marin City, according to its website.
Jeff Quackenbush covers wine, construction and real estate. Before the Business Journal, he wrote for Bay City News Service in San Francisco. He has a degree from Walla Walla University. Reach him at jquackenbush@busjrnl.com or 707-521-4256.
