New Simpson Housing Projects Total $167M

LONG BEACH, CA-Simpson Housing Solutions has added $167 million in multifamily projects to its development roster, finishing construction on a 226-unit Bay Area apartment complex and starting two others totaling 449 units, all of them aimed at the affordable housing market. The projects include the newly completed 226-unit Almaden Family Apartments in San Jose, the 241-unit Oakwood Apartments in Moreno Valley and the 208-unit Oakley Apartments in Oakley.

The $74.6-million Almaden complex, at 1501 Almaden Expressway, was designed to meet what Simpson describes as strong demand for "large, hard-to-find three-bedroom apartments" in a multifamily industry in which many developments feature primarily one- and two-bedroom units. The three-bedroom apartments at the Almaden measure nearly 1,200 sf with two bathrooms, while the other units at the complex range from 631 sf to 979 sf.

All of the Almaden apartments have been set aside for households earning a maximum of 50% to 60% of the area median income for Santa Clara County, with monthly rents ranging from $952 to $1,151 for a one-bedroom apartment, from $1,137 to $1,378 for a two-bedroom unit, and $1,310 to $1,586 for three bedrooms. Michael Costa, president of SHS, notes that all of the rents are well below prevailing market-rate rents for comparable apartments in the area.

Costa says that the project was designed "specifically to meet the needs of working families with children." Amenities include landscaping, a clubhouse and community room, a computer learning center, fitness and business centers, a pool and spa, laundry rooms outdoor BBQ areas and a tot lot.

SHS partnered with the nonprofit Community Housing Developers and the Las Palmas Foundation on the project. It was financed with an allocation of 4% federal low-income housing tax credits, $31.3 million in tax-exempt housing bonds, a loan from the city of $13.8 million and developer equity.

At the $46.3-million Oakwood Apartments complex Moreno Valley, in the Inland Empire, the units will range from two to four bedrooms and all apartments will be set aside for households earning from 30% to 60% of the area median income for Riverside County. The complex is under way at 5168 Perris Blvd.

The 241 units at Oakwood will range from 832 sf to 1,282 sf, with rents ranging from $312 to $701 for a two-bedroom apartment, $356 to $805 for three bedrooms and $465 to $882 for the four-bedroom units. Financing for the complex includes an allocation of federal low-income housing tax credits and tax-exempt bonds along with funding from the City of Moreno Valley.

On the $45.7-million Oakley complex, SHS is acting as the tax credit investor and the Corporation for Better Housing is the developer of the complex at 59 Carol Lane. The 208 units will include units from one to three bedrooms that will range from 551 sf to 1,042 sf.

Rents will range from $748 to $1,265, with all units set aside for households earning from 50% to 60% of the area median income for Contra Costa County. Comments Costa, "the Oakley-Antioch area, like virtually every city in California and elsewhere, struggles with a shortage of decent, high-quality housing that is affordable for working families as well as seniors on limited or fixed incomes."

Costa adds that the current project represents the first of three phases that eventually will also include for-sale townhomes. Financing for the Oakley Apartments includes an allocation of federal low-income housing tax credits, local redevelopment agency funds, a grant from the Affordable Housing Program of the Federal Home Loan Bank of San Francisco and construction financing arranged through Citibank.