American Management Group has sold a seven-property, 603-unit portfolio in the Bay Area to The Reliant Group for $116 million. The new owner plans to convert four of the assets, totaling 369 units, into affordable housing.
The properties to be converted include the 112-unit Villa Medanos in Antioch, the 105-unit River Park Manor in Napa, the 84-unit Willow Glen in Hercules and the 68-unit Leisure Terrace in Hayward. The new owner, through bonds and low-income housing tax credits, plans to invest $40,000 per apartment to upgrade the assets. Reliant will also renovate the remaining three communities—the 90-unit Holiday Gardens and 64-unit Strawberry Hill in Vallejo, along with the 80-unit Amador Valley in Dublin.
A Newmark Knight Frank team, led by Richard Knutson, Anthony Pappageorge, Zach LeBeouf and Will Thomas, represented the seller. Rainbow Housing Assistance Corp. will provide social service support for the assets.
Reliant has taken an active role across the country over the past year. In October, the firm paid $71 million for three multifamily assets in the Washington, D.C., metro area.
Image courtesy of Newmark Knight Frank