Vitus has announced the acquisition of River City Trio, three multifamily properties totaling 55 units in Sacramento, California.
Officials with the national firm said they plan to preserve the properties as long-term affordable housing.
“The acquisition of River City Trio is an exciting step forward in our expansion into California and creating affordable housing for low-income residents in Sacramento County,” said Brooke Kim, director of development at Vitus. “In addition to revitalizing these units, we hope to improve the quality of life for residents and make the Sacramento community stronger.”
Vitus partnered with nonprofit Foundation for Affordable Housing on the project. Merchants Capital financed the deal with a Freddie Mac Tax-Exempt Loan of approximately $8 million. The portfolio also utilized a bond issuance of multifamily housing revenue bonds from the Sacramento Housing and Redevelopment Agency.
Approximately $60,000 per unit has been budgeted for renovations. All homes will be renovated with comprehensive kitchen and bathroom remodels, new vinyl plank flooring, and upgraded heat pumps and air handlers. Upgrades will also include new high-efficiency lighting, Energy Star appliances, and energy-efficient HVAC systems. The properties’ exteriors will be renovated with new lighting, roofing and painting, sidewalk and asphalt repairs, installation of security cameras, and landscape upgrades.
Additionally, Seattle-based Vitus plans to convert 10% of the apartments to Americans with Disabilities Act units to accommodate a high number of existing senior or disabled residents at these properties.
Beyond the physical improvements, the firm is planning 520 hours per year of new resident services to these properties, including a combination of after-school programming for children and adult education on health, wellness, computer literacy, and other topics depending on the needs and interests of the residents. These services will be provided in a new community room and leasing office.
Vitus purchased River City Trio through a tax credit acquisition. Fifty-three units have a Section 8 Housing Assistance Payments contract, which was extended at closing for a period of 20 years.
These units are restricted to residents earning no more than 60% of the area median income. The remaining two units are designated as non-restricted management units. To date, Vitus has preserved nine properties in California and is continuing to invest in affordable housing in communities across the state.
Construction work will be completed by MFRG Icon, with architectural services provided by True Craft Architecture. Upon completion of construction, the properties will be managed by Aperto Property Management.