As rental rates in the Greater Los Angeles area continue to increase, the region is seeing a push for more affordable housing. A joint venture between Los Angeles-based Standard Communities and developer Faring Capital is aiming to provide this type of housing with its most recent acquisition of a 349-unit apartment complex in Pomona. In a deal totaling $130 million, the joint venture purchased the Monterey Station Apartments from Clear Capital with plans to convert the building into workforce housing, according to sources with knowledge of the transaction.
Clear Capital was represented by CBRE’s Dean Zander and Stewart Weston.
The apartment building is located at 180 E. Monterey Avenue and contains a mix of studio, one- and two-bedroom units. Currently, rental rates at Monterey Station Apartments range from $1,685 to $3,277, according to apartments.com.
The building also features various community amenities, including a fitness center, dog park, barbecue grills, fire pits, lounge areas with televisions and more.
The deal was confirmed by Chris Cruz, managing director of essential housing for Standard Companies, and would immediately lower rent at the property to be made more affordable to renters who earn between 80 and 120 percent of the area’s median income. According to Los Angeles County, the area median income is approximately $80,000 per year.
The purchase was part of Standard Communities and Faring Capital’s larger partnership, Standard-Faring Essential Housing. The $2 billion fund was announced in August with the intention of creating housing for California’s “missing middle” over the next 18 to 24 months.
The fund is to be used for both ground-up developments as well as the acquisition and conversion of current market-rate properties throughout California. In Southern California, Standard-Faring Essential Housing has created over 650 units of dedicated middle-income housing with a total capitalization of more than $400 million.
“California is in the midst of a severe housing shortage, and Standard-Faring Essential Housing’s public-private partnerships fill a crucial need for middle-income families,” Cruz said at the time of the announcement.
In total, Standard’s national portfolio spans 11,500 apartment units nationwide, including approximately 10,500 affordable and workforce housing units The real estate investment company has also completed more than $3 billion worth of affordable housing acquisitions across the U.S.
