MISSION VIEJO, CA-Wasatch Advantage Group has completed a $25 million renovation of the 136-unit Spring Villas Apartments in Southern California and a $25 million rehab of the151-unit Hayward Village Senior Apartments near San Francisco. The Mission Viejo-based multifamily specialist has earmarked all 136 units of the Spring Villas for families earning 50% to 60% of the area median income for San Diego County and has set aside all 151 of the Hayward Village units for seniors age 55 and older earning from 50% to 60% of the area median income for Alameda County.
Kipling S. Sheppard, president and CEO of Wasatch, points out that rents now range from $618 to $898 for the Spring Villas complex, well below prevailing market-rate rents for comparable units in the region east of San Diego where the property is located. Rents range from $748 to $1,072 at the Hayward Villas, also well below prevailing market-rate rents in the region.
The Spring Villas complex is at 8760 Jamacha Rd. in Spring Valley and was built in 1987. The property includes a mix of one-bedroom, one-bath and two-bedroom, two-bath units that range from 495 sf to 675 sf.
The Hayward Villas complex, at 22078 Arbor Ave. in Hayward, features units of one and two bedrooms with one bath, ranging from 500 sf to 660 sf. The four-story garden-style complex includes a community room, a computer center, a pool and spa, a fitness center, a business center, BBQ areas, laundry rooms and elevator service.
Sheppard describes the three-year process of acquiring the Spring Villas property, securing financing and completing the extensive renovations as "arduous but worth the wait." Financing for the $25 million project included $12 million in tax-exempt bonds, $8.3 million in low-income housing tax credit equity, a $3.2 million residual receipts loan from San Diego County, and both seller and deferred developer fee notes.
Wasatch partnered with the nonprofit Hearthstone Housing Corp. on both the Spring Villas project, which was designed by the architectural firm KTGY Group, and on the Hayward Village project. Hayward Village was financed through a combination of low-income housing tax credit equity and tax-exempt bonds.
Sheppard comments that Wasatch aims to create "an affordable community that also offers style and amenities comparable to market-rate housing." As Americans live longer, Sheppard adds, "the need for high-quality affordable housing designed to provide more choices for seniors on limited incomes continues to grow."
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