Standard Grows CA Portfolio of Affordable Senior Housing

Standard Communities, a developer that specializes in affordable housing for seniors, is partnering with an unnamed institutional investor and an LA-based non-profit to buy three multifamily properties in California for $195M.

The capitalization for the three-property portfolio includes more than $19M for renovations.

The multifamily complexes, with a total of 559 units, include Heritage Village, a 5.1-acre complex with 196 units in Anaheim; Heritage Park, a 5-acre complex with 196 units in Escondido, a San Diego suburb; and Heritage Park Livermore, an 8.17-acre property with 167 units in the East Bay community of Livermore.

The three properties all are currently marketed as affordable housing for seniors. Standard is folding the three properties into its “affordable housing preservation” program, which keeps rents capped for tenants.

“We believe housing is a pathway to human prosperity. We’re preserving and expanding affordable housing in some of the areas that need it most in California. Seniors are the fastest-growing population in California,” said Jeffrey Jaeger, co-founder of Standard Communities.

Joon Lee, Standard’s managing director of strategic capital, noted that 20% of the population of Livermore consists of seniors and the average price in the area is now more than $1 million, a price that has increased nearly 30% YOY.

“It’s important to Standard to provide affordable housing options for seniors. Our investments help to strengthen the economic and social fabric of communities,” Lee said.

Standard’s improvements at the three Heritage properties will consist of plumbing, HVAC systems, fire safety and security upgrades, replacement of roofing, doors and windows, and repainting. The units also will receive new kitchen cabinets and energy-efficient appliances, as well as bathroom renovations and new flooring.

Standard completed the Heritage transaction in partnership with Los Angeles-based non-profit Housing on Merit and an institutional joint venture equity partner.

“There is extraordinary demand for this asset class from first-class institutional investors. Standard Capital is a steward of capital for those seeking exposure to the affordable housing arena, said Chris Cruz, Standard’s managing director of essential housing.

In the last 12 months, Standard’s Essential Housing group has facilitated the conversion to affordable housing of more than 1,750 units in California. The company said it is expanding this effort nationwide, with a focus on coastal markets and the mountain regions.

Based in New York and Los Angeles, Standard has a national portfolio of more than 14,000 apartment units and has completed more than $3.8B of affordable housing acquisitions and rehabilitations.