Jamboree Wraps Up SoCal Hotel-to-Affordable Conversion

Jamboree Housing Corp. has opened Estrella Springs, its third hospitality-to-residential conversion. The affordable community has 89 studio units catering in part to formerly homeless veterans in Santa Ana, Calif. Funding for the project totaled $55.7 million.

Of the total, 34 apartments are restricted for veterans, while the remaining 55 are reserved for individuals living with a mental health diagnosis. All units cater to residents earning at or below 30 percent area median income.

Estrella Springs took shape through the adaptive reuse of two existing three-story buildings, formerly a Budget Inn Motel. The conversion involved structural and interior renovations including the addition of kitchens, updated cabinetry, as well as new HVAC systems, among others.

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Amenities include a 4,347-square-foot community center with a lounge area and spaces for activities, including case management. Additional features comprise a computer lab, gym, sports court and dog run, among others.

Estrella Springs is at 1108 N. Harbor Blvd., approximately 4 miles from downtown Santa Ana and about 10 miles south of downtown Anaheim, Calif. Numerous parks are within 5 miles, while the Santa Ana River runs about 2 miles away.

Santa Ana’s affordable programs reduce homelessness

Funding for the community included:

• $18.3 million in tax credit equity provided by Red Stone Equity Partners
• $16.1 million note originated by Chase Bank
• $10 million provided by The California Department of Housing and Community Development’s Veterans Housing and Homelessness Program
• $4.7 million grant awarded by CalOptima Health
• $3.5 million in a residual receipt loan issued by The Orange County Housing Finance Trust
• $1.7 million provided by The City of Santa Ana in the form of a HUD Community Development Block Grant and project-based vouchers
• $890,000 in an Affordable Housing Grant issued by the Federal Home Loan Bank of San Francisco
• $500,000 grant provided by The Home Depot Foundation

The City of Santa Ana has reduced homelessness by 19 percent since 2019 through its affordable housing programs—more than every other city in Orange County combined, according to the developer.

The city also financed the construction of Heroes Landing, a 75-unit affordable veteran community developed by Jamboree more than 1 mile away from Estrella Springs, as well as the development of another 49-unit, hospitality-to-residential conversion project by Jamboree dubbed The Heartwood Apartments. The latter is in Mountain View, Calif.

Orange County affordable deliveries soften

Orange County’s fully affordable pipeline included more than 840 units under construction as of November, according to Yardi Matrix data. During the first 10 months of the year, developers completed north of 580 units across seven fully affordable communities, with Santa Ana encompassing the largest share of this total, 170 units.

The market’s affordable multifamily deliveries clocked in at roughly 1,250 units last year, the same source shows. Nearly half of these debuted in Santa Ana, as a joint venture between The Pacific Cos., Boston Capital and AMG brought online the 552-unit affordable community First Point.