A public-private partnership led by Standard Communities, the affordable housing division of Standard Cos., has purchased a 357-unit multifamily property in Carson for a total consideration of more than $220 million.
Standard Communities worked with the California Statewide Communities Development Authority, which now owns the property, Stifel Nicolaus & Co. and the city of Carson. Standard is serving as the project administrator.
The property, located at 615 E. Carson St., is known as the Union South Bay. It is a five-story building that sits on more than 5 acres.
Standard is using the public-private partnership to create middle-income housing.
In 2020, CSCDA created a workforce housing finance program that uses tax exempt bond financing to acquire multifamily projects.
Rents will immediately decrease for qualifying residents with incomes of 80% to 120% of the area’s median income.
“Standard is an enthusiastic partner with the CSCDA and the city of Carson in our efforts to create middle-income housing at this critical time,” Chris Cruz, managing director of essential housing at Standard Communities, said in a statement.
“Union South Bay Apartments demonstrates Standard’s creative and nimble approach to increasing middle-income housing in California. We look forward to further partnerships that ensure housing for middle-income and essential workers is created across the state,” he added.
In addition to apartment units, the property has more than 28,000 square feet of retail space. The property features a fitness center, rooftop deck, swimming pool, indoor/outdoor bar and a dog washing station.
The acquisition is Standard’s second multifamily transaction in Carson in the last six months.
The other acquisition was the Renaissance at City Center in Carson, which the company acquired in December. It led a $78 million transaction at the site to convert it from market- rate to workforce housing. The deal was completed in 54 days.
Standard Communities now has a portfolio of 4,000 units in the Golden State. “Housing costs have soared, with rents often consuming up to 50% of a family’s income. Standard seeks to play a growing role in creating homes for middle-income families in California,” Jeffrey Jaeger, co-founder and principal of Standard Communities, said in a statement.
The CSCDA has been busy acquiring assets in the area. Recently the group, along with Waterford Property Co., purchased two multifamily properties in Pasadena for a combined $335.1 million: the 340-unit Residences at Westgate for $237 million and the 173-unit Hudson for $98.1 million.
Waterford will serve as the building’s property administrator for both sites. Waterford and the CSCDA also recently acquired the 507-unit Altana in Glendale for $300 million and the 216-unit Oceanaire in Long Beach for $120 million. The partners have acquired more than 2,000 units in Southern California worth more than $1 billion this year.