Standard Communities Wraps $1B Affordable Housing Buy
The investor will add three new markets to its footprint.
In the largest affordable acquisition so far this year, Standard Communities has purchased a 6,000-unit portfolio of 60 affordable housing communities for $1 billion. Spanning four states, the deal marks the firm’s first foray into the Arizona, Texas and Colorado markets, and will also grow its California portfolio to about 11,000 units.
As of September, the company had a portfolio of more than 20,600 units across 18 states, valued at $4.4 billion.
Investment and expansion
According to Yardi Matrix information, sellers included the Foundation for Affordable Housing, Crossroads Housing Development Corp. and Integrity Housing, which owned communities in Los Angeles, Austin and Aspen, Colo., respectively.
Standard’s new California properties include Harmony Court, a 187-unit affordable senior housing community in Redondo Beach, Calif. Properties in Texas and Colorado include The Oaks at Georgetown, a 187-unit property in the Austin suburb of Georgetown, and Maroon Creek Apartments, a 42-unit workforce housing development in Aspen, Colo. All three communities were built in 1996.
READ ALSO: Q&A With the Terwilliger Center for Housing
Harmony Court, previously owned by the Foundation for Affordable Housing, comprises one- and two-bedroom apartments, and has an affordability program sponsored by a non-governmental organization.
The Oaks at Georgetown was purchased by Crossroads in 2016, and the community’s affordability stems from a mix of tax credits and Section 8 vouchers.
The development of Maroon Creek Apartments financed in part by 9 percent Low Income Housing Tax Credits, as well as a loan from the city of Aspen.
More Standard moves
In addition to markets in the western and southern U.S., Standard has also expanded into the Midwest, with recent developments in Michigan and Minnesota. In late September, the company announced its partnership with River Caddis Development to build River’s Edge, a $56 million, 228-unit project located on Kalamazoo, Mich. The development is a public-private partnership, which includes the Michigan State Housing Development Authority, as well as Kalamazoo County and the city government.
In the North Star State, Standard made two acquisitions in July and August. The first was for Rivertown Commons, a 96-unit affordable senior housing community located in Stillwater. A month later, the company picked up Lenox Place Apartments, a 152-unit community in Duluth that it plans to renovate.
