LA Affordable Property Trades for $140M
Standard Communities is leading a $2 billion initiative to create “missing middle” housing in California.
A Standard Communities public-private partnership has acquired Millennium South Bay, a 230-unit community in Hawthorne, Calif., for around $140 million. The company partnered with Faring, the California Statewide Communities Development Authority and the city of Hawthorne for this acquisition.
CSCDA originated a $182.7 million loan provided by Wilmington Trust Bank, Yardi Matrix shows. At closing, the buyers set aside $17.5 million to support the long-term operation and the physical condition of the asset.
In August last year, Standard Communities and Faring formed a joint venture, Standard-Faring Essential Housing, to create over $2 billion of “missing-middle” housing throughout California through new developments and the conversion of existing market-rate communities. Millennium South Bay is the joint venture’s fifth transaction.
CSCDA will work with Standard Communities to immediately lower rents for residents who earn between 80 and 120 percent of the area median income. Standard Communities’ Managing Director of Essential Housing, Chris Cruz, said in prepared remarks that two-thirds of the units are reserved for individuals making below $82,000 a year, while one-third are set aside for those making at or below $66,000 a year.
Close-up on Millenium South Bay
Built in 2021, the LEED Gold certified community is a mixed-use development that offers a mix of studios, one- and two-bedroom units, ranging from 577 to 1,319 square feet, according to Yardi Matrix data. The property also features ground-floor restaurant and retail space. Community amenities include a fitness center, clubhouse and pool.
Located at 12530 Crenshaw Blvd., the community is some 14 miles southwest of downtown Los Angeles, while the Los Angeles International Airport is 6 miles west of the property. Several dining, retail and entertainment options are available within a 1-mile radius.
In November last year, Standard Communities acquired ownership interest in Riverstone Apartments, a 103-unit senior housing community in Pawtucket, R.I. This purchase brought the company’s Rhode Island footprint to more than 500 units.