Opportunity Housing Group has continued its workforce housing initiative by acquiring two Santa Rosa, Calif., communities in partnership with a California state agency. The company acquired the pair of properties totaling 457 units alongside the California Statewide Communities Development Authority (CSCDA) for a total of $183 million.
Lauren Seaver, president of OHG, told Multi-Housing News that Opportunity Housing Group will be the asset manager on behalf of the CSCDA, who owns the communities. The partnership acquired Vineyard Gardens Apartments for $65.8 million from a joint venture between Angelo Gordon and Glencrest Group and Acacia on Santa Rosa Creek Apartments for $117.5 million. According to Yardi Matrix data, Greystar was the seller for Acacia on Santa Rosa Creek Apartments.
JLL’s Scott Bales, Nolan Moore and Max Machiorlette represented Opportunity Housing Group in the Acacia on Santa Rosa Creek Apartments deal and Institutional Property Advisors’ Salvatore Saglimbeni, Philip Saglimbeni, Stanford Jones and Alex Tartaglia represented the joint venture seller for Vineyard Gardens Apartments.
The 277-unit Acacia on Santa Rosa Creek Apartments at 4656 Quigg Drive has one-, two- and three-bedroom floorplans that range from 630 to 1,271 square feet, according to Yardi Matrix data. The units were previously rented at market rates but Opportunity Housing Group will reduce rents to low- to moderate-income levels that are expected to save renters up to $250 per unit per month compared to current market rates. The community’s amenities include a fitness center, swimming pool, hot tub, clubhouse, business center and resident parking. Seaver told MHN that Acacia on Santa Rosa Creek Apartments was 97 percent occupied.
Seaver also told MHN that Vineyard Gardens Apartments was 98 percent occupied. The 180-unit community at 220-240 Burt St. offers one- and two-bedroom floorplans ranging from 559 to 926 square feet. The community was built with a fitness center, pool, bocce court, outdoor fireplace, playground area and resident parking.
MAKING HOUSING FOR CALIFORNIA’S MISSING MIDDLE MARKET
Seaver said in prepared remarks that the two Santa Rosa acquisitions are part of Opportunity Housing Group’s $1 billion pipeline of acquisitions for the company’s workforce housing program. Seaver also told MHN that the company is working on several more transactions, expecting maybe two or three closings.
Working again with CSCDA, Opportunity Housing Group also acquired a 261-unit transit-oriented community in Monrovia, Calif., in April that was also part of its workforce housing initiative. Seaver added in her prepared statement that providing high-quality housing at reasonable rents through workforce housing is consistently overlooked compared to the traditional market-rate and affordable housing sectors.