Dees Stribling, Contributing Editor
San Bernardino, Calif.–Meta Housing Corp. has closed escrow on the 119-unit Sunset Cove Apartments in San Bernardino as part of a partnership with the city’s Economic Development Agency. The buyer plans to relocate the current tenants, paying 42 months worth of relocation benefits for that purpose, before completely rehabbing the property and converting it to affordable housing for seniors.
Meta Housing has retained Overland, Pacific and Cutler as its relocation specialist to work with Sunset Cove tenants and assess their relocation needs on an individual basis. Sunset Cove was 50 percent vacant at the close of escrow, which the buyer says improved the buyer’s costs associated with tenant relocation. The total project cost for the conversion is estimated at $18.5 million.
Originally built in phases starting in 1958, the property consists of 108 one-bedroom units, 10 two-bedroom units, and one two-bedroom/two-bath unit, with wood frame and stucco construction, carport parking, a pool and management office. The refurbished complex will include 119 new units with a clubhouse, upgraded swimming pool, elevators, new walkways, lighting, security, landscaping and a new perimeter wall.
During escrow, the San Bernardino City Council voted to have the city’s EDA provide a loan to the buyer to purchase the property, which had been the site of increasing crime during recent years. According to Meta Housing, obtaining local support for the project was critical to the success of the deal because of a number of hurdles to financing for the property, which suffers from many physical condition issues, such as vandalism throughout the complex, gang activity, other crimes and property damage.
“I believe these deals will continue as long as there is significant demand for affordable senior housing and funding sources are available to get them properly financed,” Tim Steuernol, vice president of NAI Capital, tells MHN. Steuernol represented the buyer in the acquisition of the property. The seller was 655 Dudley L.P., a partnership between Paul Calvo & Co. and Milan Capital Management.