California Affordable Asset Trades for $45M

This marks the community’s first ownership change since its opening in 1983.

A joint venture of Rainbow Housing, Boston Financial and Reliant Group has acquired Seaside Apartments, an 84-unit affordable housing asset in Santa Cruz, Calif., from DKD Property Management, Yardi Matrix data shows. The property traded for $45 million in a deal brokered by Marcus & Millichap.

The California Municipal Finance Authority issued bonds amounting to $11 million with Wilmington Trust as trustee, the data provider shows. The bond carries a 9.5 percent rate and it’s due in 2059. CMFA issued two additional notes with Citibank as trustee. The first, amounting to $17.5 million, is due in 2028 and the second $34.5 million loan has a 2055 maturity date.

Seaside Apartments’ sale represents the first time the property changed hands since its debut in 1983, Mitchell Zurich, senior managing director investments at Marcus & Millichap’s Palo Alto office said in prepared remarks.


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Consisting of five two-story buildings and a single-story amenity building, the community encompasses one- to three-bedroom floorplans ranging from 626 to 1,156 square feet. Amenities comprise a children’s playground, barbecue area and carports. All units are eligible for the Project-Based Section 8 Housing Assistance Payment program, Zurich added.

Located at 1380 30th Ave., Seaside Apartments is less than 4 miles west from downtown Santa Cruz. The Brommer Street County Park—which features playgrounds and sports courts—is across the street from the community. 

Marcus & Millichap Zurich alongside Executive Managing Director Kirk Trammell, as well as First Vice Presidents David Cutler and Joshua Johnson, represented the seller and procured the buyer.  

California Municipal Finance Authority’s capital ventures

CMFA’s goal is to provide economic support, foster an environment for job creation and take part in social programs throughout California. To this end, CMFA shares 25 percent of all issuance fees directly with its member communities and another 25 percent is distributed toward charitable causes.

Another developer that benefited from CMFA’s financing is Thomas Safran & Associates, which secured $47.3 million in bonds for The Arlington, an 84-unit affordable development in Los Angeles. Construction began in June.

Affordable housing deals on California’s Central Coast

Inclusive of Seaside Apartments, just two fully affordable assets bearing 50 or more units changed hands throughout the Central Coast market year-to-date through September, Yardi Matrix data shows. During the same period of last year, a single such affordable asset traded.

The other affordable property that changed hands—also an age-restricted community—was Mission Garden Apartments. Jonathan Rose Cos. acquired the asset from a partnership between Reiner Communities and Las Palmas Housing. The property commanded $34 million, according to Yardi Matrix data.

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