Workforce Housing, The Hottest Investment Class

Chris Tourtellotte

In the midst of California’s affordability crisis and housing shortage, workforce housing is becoming one of the most in-demand product types for investment. LaTerra Development recently completed construction on a new construction workforce housing project and sold it ahead of schedule for a market-record price of $33 million or $340,000 per unit. Providence Capital purchased the 97-unit property, which is located in Chula Vista. The sale illustrates the strong market demand.

“We are very bullish on the Chula Vista submarket, so we were expecting strong pricing. This was higher than our expectations, but we were not surprised. We knew that we would do well on this asset,” Chris Tourtellotte, managing director of acquisitions and capital markets at LaTerra Development, tells GlobeSt.com. “It is in a great submarket, and it is a good class-A product with nice amenities. Workforce housing is also becoming a favored asset class right now.”