Affordable housing developer and owner Chelsea Investment Corp. has closed escrow on three properties that will provide nearly 260 units in Southern California.
“We are excited to be moving forward with these three projects,” says Jim Schmid, Chelsea founder and CEO. “Each one fits into our mission to provide housing solutions for people in search of a quality place to live at affordable rates.”
The largest development is Westminster Manor, a 16-story apartment community with 152 studio and one-bedroom apartments for seniors in San Diego. The purchase price was $28.65 million.
Chelsea represented itself in the transaction while the seller was represented by Victor Krebs of Colliers International. Purchase price was $28,650,000.
The property was owned and operated by Westminster Manor of San Diego, which has partnered with Chelsea to refinance and redevelop the building so that it will remain affordable for another 55 years.
Built in 1972, the development will undergo a full interior and exterior renovation. The work will require residents to be relocated during the construction period while their apartments are fitted with new kitchens, bathrooms, floors, and energy-efficient appliances.
Extensive building improvements, including new fire sprinklers, alarms, and roof, are also planned. The work is expected to be completed in September 2015. BASIS Architecture of San Rafael designed the renovation.
Overall, the project is estimated to cost about $54 million and is financed with low-income housing tax credits (LIHTCs) and tax-exempt bonds. Union Bank is the construction and permanent lender. The Richman Group is the tax credit investor. The San Diego Housing Commission authorized the issuance of the bonds, and the San Diego City Council, sitting as the Housing Authority of the City of San Diego, approved the bonds.
In a separate transaction, a Chelsea affiliate purchased 3.1 acres in Imperial from C&G Farms. The price was $650,000.
An existing structure on the property will be demolished to make way for Las Palmeras Apartments, a 56-unit development for farmworkers. Estimated value of the project is $13.6 million.
Construction is expected to begin this month and will be completed in September 2015. Designed by Hedenkamp Architecture and Planning of San Diego, the project will be built to LEED Platinum standards with solar panels to offset 90 percent of the energy load.
Financing partners include the city of Imperial and Raymond James Tax Credit Funds, the LIHTC syndicator. The U.S. Department of Agriculture is the permanent lender, and Rabobank is the construction lender.
The third property is a 2.9-acre site that will be home to the new 48-unit Villa Primavera Apartments in Calexico. A Chelsea affiliate, with Southern California Housing Collaborative as the managing general partner, represented itself in the $810,000 purchase.
Designed for large families, the project will include 17 units for households with at least one developmentally disabled member. The project is estimated to be valued at $13.3 million
Also designed by Hedenkamp Architecture to meet LEED Gold standards, the development consists of five two-story garden-style buildings and a community building. Grading is set to start this month with construction taking about 10 months.
Financing partners include the city of Calexico, which is providing Community Development Block Grant and HOME funds; tax credit equity provider City Real Estate Advisors; California Department of Housing and Community Development; and Rabobank.