Belveron Partners has acquired two affordable housing communities in Southern California—Presidio Park in Santa Barbara and Pacific Terrace Apartments in Midway City.
The acquisition of the Section 8 developments marks the firm’s entrance into Southern California. As a result of the transaction, the existing Section 8 contracts with the Department of Housing and Urban Development (HUD) will be extended for an additional 20 years beyond their existing terms.
“At Belveron, we view protecting existing affordable housing as the most important tool for combating rising rents and the loss of affordability throughout the country,” said Chloe Unger, director of acquisitions at Belveron Partners. “We are proud to join the Midway City and Santa Barbara communities and to take over as responsible stewards of Pacific Terrace and Presidio Park Apartments. We wish to thank our partners locally and at HUD for helping us ensure these homes remain affordable well into the future.”
A two-story, garden-style apartment complex consisting of 50 units, Presidio Park was acquired for approximately $23 million. The 98-unit Pacific Terrace Apartments, which caters to seniors, was purchased for $37.25 million.
Belveron partnered on the acquisitions with the Foundation for Affordable Housing, a family of nonprofit entities that have helped develop and operate more than 150 affordable communities in California. The transactions were financed by a $16.5 million Fannie Mae loan (Presidio Park) and a $27 million Fannie Mae loan (Pacific Terrace), both originated by Capital One.
In addition to instituting new property management led by Quality Management Group, Belveron will invest upward of $30,000 per unit to improve the physical condition of both buildings with a focus on activating community spaces and modernizing individual apartments, said firm officials.
Headquartered in San Francisco, the firm has raised over $1 billion in equity across six real estate investment funds and is one of the nation’s largest affordable housing owners.