A Los Angeles investor has paid $64 million for Heritage Village Anaheim, a 196-unit senior living facility in the downtown area of the city.
Standard Communities paid nearly $327,000 per unit for the property along Santa Ana Street as part of a three-property portfolio deal totaling $195 million.
A Colorado-based apartment real estate investment trust, Apartment Income REIT Corp., sold the 559-unit portfolio.
Heritage Village Anaheim is an affordable housing community with one- and two-bedroom units averaging 610 square feet. The average monthly asking rent is $1,885. The property, built in 1986, is at 707 W. Santa Ana St., about 2 miles north of Disneyland Resort.
“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,” said Jeffrey Jaeger, co-founder and principal of Standard Communities.
“Seniors are the fastest-growing population in California and Standard Communities is proud to be a part of the solution to meet their increasing demand for quality affordable rental housing.”
Essential Housing Portfolio
Standard also acquired a 196-unit senior living community in Escondido and a 167-unit property in Livermore as part of the $195 million transaction.
The company is planning $19 million in renovations across its portfolio, including infrastructure upgrades, repainting of buildings, renovated common areas and amenities, and new kitchen cabinets with energy-efficient appliances, bathroom renovations and new flooring for the units.
Standard Communities acquired the three Heritage properties with nonprofit housing group Housing on Merit and an undisclosed institutional joint venture equity partner.
Standard’s Essential Housing group has been involved in the conversion of over 1,750 units in California over the past year, and is expanding its efforts nationwide with a focus on coastal markets and the mountain regions. The company counts 13,600 units across 17 states.
“Our team is focused on innovative ways to create and preserve affordable housing units outside of the federal LIHTC (Low-Income Housing Tax Credit) program,” Managing Director of Essential Housing Chris Cruz said in a statement. “There is extraordinary demand for this asset class from first-class institutional investors, and Standard Communities is proud to be a steward of capital for those seeking exposure to the affordable housing arena.”
The sale of Heritage Anaheim is the priciest rental property deal for the city since the end of 2021, when a trio of high-end complexes traded in a portfolio deal totaling $380 million, including the $194 million sale of Jefferson at Platinum Park, which is the most expensive apartment sale on record for the city of Anaheim.
June is proving to be a busy month for local assisted living and senior housing transactions; a joint venture led by San Diego-based Kisco Senior Living paid $116 million for a luxury senior housing property in Laguna Niguel, in one of the top multifamily sales year-to-date. See page 3 for more on that transaction.