Langdon Park Capital Expands Affordable Housing Acquisitions

Langdon Park Capital, a new joint venture focused on acquiring value-add affordable housing in communities of color, has purchased two multifamily properties in Los Angeles for $36.9M.

The partnership, which includes LA-based Kennedy Wilson and Greenwich, CA-based Eldridge Industries, bought a 177-unit apartment complex in Hollywood and a 23-unit building in Baldwin Village.

The Derby Apartments, located at 5640 Santa Monica Blvd., sold for $31.2 million, about $177,000 per unit. The purchase price for the Baldwin Village building was sold for $5.5 million, which translates into $239,000 per unit.

Langdon Park Capital will renovate the apartments and rent them to tenants with incomes between 60% and 120% of median income in their locations.

Langdon Park Capital, which is raising funds from institutional investors and pension funds, is focused on buying properties in densely populated urban areas that are majority Black and Latino.

Prior to the two LA acquisitions, Langdon Park Capital acquired a 3-4-unit multifamily complex in Fort Washington, MD for $63.2M. The partnership is renaming the property, which was built in 1965, Langdon Park at Fort Washington.

The Fort Washington complex at 2438 Corning Ave., is located in a neighborhood where a majority of residents earn less than 70% of the area’s median income.

Langdon Park Capital has committed to make $5M in capital improvements at Langdon Park at Fort Washington, including upgrading unit interiors, building exteriors and an on-site community center.

The company also has pledged to work with local organizations to provide a range of social services, including financial education and workforce development.

Pension funds in California also are contributing to the effort to create more affordable housing in LA.

The California State Teachers’ Retirement System recently made a $50M investment in SoLA Impact, an Opportunity Zone real estate fund that is building affordable housing in Los Angeles.

SoLA Impact is planning to double the size of its portfolio of 1,500 multifamily units in the greater South Los Angeles area, which is a federally designated Opportunity Zone. SoLA Impact also has acquired a business campus in Opportunity Zone known as The Beehive.

On its website, SoLA Impact says 53% of the tenants at its multifamily properties were formerly homeless, 33% are survivors of domestic abuse, 70% hold a housing subsidy and 60% live below the poverty line.

In 2020, Forbes magazine and the Sorenson Impact Center cited SoLA Impact as the nation’s leading Opportunity Zone Fund with an Urban Focus.