BRIDGE Acquires 2 West Coast Communities
The purchase will preserve affordable apartments in California and Oregon.
BRIDGE Housing has added two properties to its affordable housing portfolio to help boost the availability of apartment homes on the West Coast. The company acquired Avalon Berkeley, renamed Viewpoint, in Berkeley, Calif., and Berry Ridge in Gersham, Ore.
The acquisitions will create or preserve 319 affordable units. An existing 262 affordable homes will be preserved on top of an additional 57 set to be converted from market rate units in Viewpoint.
Viewpoint is a 94-unit community featuring studio, one- and two-bedroom apartments. Currently, 14 homes are affordable for residents earning up to either 50 or 80 percent of the Area Median Income. After BRIDGE Housing converts another 57 homes, 75 percent of the community will be affordable housing.
Completed in 2014, Viewpoint features a fitness center, clubroom and rooftop lounge with views of the San Francisco Bay. The five-story building is in proximity to retail and dining options and is adjacent to the Berkeley Amtrak station. AvalonBay Communities sold the community.
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Berry Ridge is a 248-unit property featuring one- and two-bedroom homes. The entire building, completed in 1998, is restricted for residents earning up to 60 percent AMI. However, the affordability is under an agreement set to expire in three years. The company intents to extend its affordability for the long term.
Located 16 miles east of downtown Portland, Berry Ridge features a clubroom, fitness center, spa and pool. The two-story, garden-style community is nearby jobs, dining and retail options. It is BRIDGE’s third recent affordable housing project in Greater Portland.
The acquisitions were made with the help of a financing agreement with Morgan Stanley and National Equity Fund. BRIDGE also collaborated with the cities of Berkeley and Gresham; Home Forward, Portland’s housing authority; Oregon Housing and Community Services; and the California Municipal Finance Authority.
Preserving affordability
In the last month, BRIDGE has closed on deals to preserve more than 600 apartments from transitioning to market rate. This year the company completed 10 new communities and began construction on seven others.
The company is also expanding ground-up development, which will total nearly 14,800 units by the end of 2024. More than 10,000 additional units are in the development and acquisition pipelines.
C.W. Early, senior managing director & affordable housing leader, JLL, told Multi-Housing News that the West Coast and other high-cost regions witnessed a significant rise in proactive sponsors working to develop, maintain and increase affordable housing options.
“Property owners leverage various tools to ensure economic viability while benefiting residents, primarily through affordable housing tax exemptions, entitlement variances and tax-exempt bond financing,” Early said. “Looking ahead, we anticipate more states and the federal government will introduce new incentives to stimulate new housing development and safeguard the substantial existing affordable housing stock approaching the end of its designated affordability period.”
