Century Housing Buys CityView Senior Affordable Apartments for $66M

Century Housing has acquired CityView apartments in Wrigley area of Long Beach for $66.5 million. The 296-unit multifamily community houses seniors making less than 60% of the median area income.

Century Housing acquired the property using a non-volume cap real estate secured tax-exempt bond offering in combination with an unsecured privately placed AA- rated tax-exempt bond, which is a rare method to raise capital. The remainder of the capital stack included the issuance of two separate but coordinated 501(c)3 bond sales: a $48 million public execution with Wells Fargo as the underwriter and a $21 million private placement to Barclays through U.S. Bank as underwriter and placement agent. Century says that this buying structure will help to preserve the affordable rents, preserving low-income homes for nearly 300 seniors.

The acquisition also aligns with Century Housing’s ESG initiatives. Both bonds placed on the property carry an ESG opinion from Sustainalytics. The property is part of Century’s strategy to develop supportive, green housing at scale, according to the company.

CityView apartments was renovated in 2015. The capital improvements included a new cool roof, new windows, Energy Star refrigerators, HVAC improvements, and LED light installation. The property amenity package includes community room, fitness center, library, tech center, laundry facilities with TVs, game tables, elevators, surveillance cameras, controlled-access entry and rooftop deck with a BBQ area.

The events of the last two years have placed a much-needed spotlight on affordable housing investment, leading to a surge in deals. Also in the Los Angeles Metropolitan, Waterford Property Company and the California Statewide Community Development Authority have partnered to acquire Residences at Westgate, a 480-unit affordable apartment community in Pasadena, for $280 million from Equity Residential. This is the fourth property in Waterford’s Pasadena affordable housing portfolio. It will serve as project administrator for the property.

Similarly in November, The Jonathan Rose Companies’ The Rose Affordable Housing Preservation Fund V has acquired the Kings Villages Apartments in Pasadena for $223 million. The property includes 313 LIHTC and HUD-regulated Section 8 and Section 42 LIHTC units. The fund closed the acquisition in record time, reflecting the imminent need for affordable housing in Southern California.