Newport Beach, CA (September 22, 2021) – Waterford Property Company (Waterford) in partnership with California Statewide Community Development Authority (CSCDA) continue its push to become California’s leader in essential housing with the acquisition of two multifamily properties in Orange, CA totaling 356 units.
The acquisitions include Cameo, a 262-unit multifamily community located at 1055 W. Town and Country Road, for $149 million and Garrison, a 94-unit multifamily community located at 1725 West Katella Avenue for $57.05 million. These communities will provide housing affordability to the state’s “missing middle income” demographic which is comprised of households earning between $56,000 and $134,000.
Upon taking ownership, Waterford, as administrator, and CSDA will immediately lower rents for qualified new residents making between 60% to 120% of the area median income (AMI). Waterford anticipates average rental savings of 12 percent for qualified tenants leasing at these Orange properties.
“California has a housing crisis. Our nurses, teachers, librarians, first responders and civil servants earn too much to qualify for traditional affordable housing yet not enough to live in the communities they serve. This negatively impacts the state’s economy and leads to increased congestion, crime, pollution, poor student performance and social unrest,” said Sean Rawson, co-founder, Waterford.
The Orange City Council voted 7 to 0 on August 10 to approve the acquisitions. Orange Councilmember Arianna Barrios said during the meeting, “I am excited and thrilled regarding the innovation that was shown… I applaud you for the job you did because this fills the gap in our housing numbers we didn’t have before …and gives a lot of relief to those who need it most, especially coming out of the pandemic.”
The Orange acquisitions mark Waterford’s seventh and eighth multifamily acquisitions in partnership with CSCDA. Waterford’s Essential Housing portfolio now totals 2,378 units and over $1.45 billion of tax exempt bond issuances.
As one of California’s most active providers of essential housing, Waterford has seen tremendous success implementing affordability restrictions in its communities. For example, at Oceanaire, the third property acquired by Waterford and CSCDA, Waterford notes that the average unit leased under this essential housing program is saving 18.7 percent on rent when compared to current market rents or approximately $7,189.79 of household savings per year.
“The ‘missing middle’ is the most difficult segment of the population to provide housing for because it is a high barrier to entry price point that makes the financial feasibility of producing new units extremely difficult. With this program we are able to acquire market rate assets and convert them to workforce units immediately. To put this into context, in less than a year we have converted nearly 2,500 units to workforce housing. In comparison, it typically takes three to four years to the develop the same number of units,” said John Drachman, co-founder, Waterford. “The opportunity to make an immediate impact is what makes this program so transformative at a time when apartment rents are only on the rise.”
For the Cameo transaction, Joseph Smolen, Geoff Boler, and Lee Redmond of Eastdil Secured represented Waterford. The seller was Toll Brothers. For the Garrison transaction, Waterford was represented by Tom Moran of Berkadia. The seller was BMV Marble, LLC.
Waterford Property Company is a diversified real estate investment and development company with an established track record in the acquisition and development of over $2 billion in multifamily and commercial properties. Its expertise includes developing mixed-use multifamily projects throughout California, developing and investing in affordable housing and repositioning existing commercial properties. It is led by its co-Founders John Drachman and Sean Rawson. For more information, visit www.waterfordco.com.
CSCDA is a joint powers authority founded by the League of California Cities and the California State Association of Counties in 1988 to enable local government and eligible private entities access to low-cost, tax-exempt financing for projects that provide a tangible public benefit, contribute to social and economic growth and improve the overall quality of life in local communities throughout California. CSCDA is comprised of more than 530 cities, counties and special districts, and has issued more than $65 billion through 1,700 plus transactions across its diverse public benefit financing programs. For more information, visit www.cscda.org.