Waterford will convert 200-unit luxury rental complex to workforce housing

Firm paid $120M for Oceanaire in Long Beach, financed with state funds

Los Angeles /
Mar.March 31, 2021 11:40 AM
Waterford’s John Drachman and Oceanaire at 150 W. Ocean Boulevard in Long Beach (Photos via Waterford and Oceanaire)
Waterford’s John Drachman and Oceanaire at 150 W. Ocean Boulevard in Long Beach (Photos via Waterford and Oceanaire)

Waterford Property Company paid $120 million for an apartment complex in Long Beach, and because it utilized state financing, will convert the luxury complex into middle-income housing.

Waterford received tax-exempt bonds from the California Statewide Communities Development Authority to buy the Oceanaire at 150 W. Ocean Boulevard, according to Commercial Observer. In exchange, Waterford will lower rents for households with incomes between 80 percent and 120 percent of area median income. The Oceanaire has 216 units.

The seller was a subsidiary of multifamily giant Lennar, which also developed Oceanaire. The units are currently priced on the upper end of the market.

The state’s financing deal is part of a workforce housing finance program that the Communities Development Authority created last year to address the state’s so-called “missing middle” housing issue. Government bonds and other subsidies and programs help finance low-income housing, but middle-income tenants don’t qualify for most of those programs.

Area median income in L.A. County is currently set at $70,300 for a four-person household. Households earning between $61,840 and $92,760 would qualify for Oceanaire.

The state program also bars Waterford and other companies from displacing any existing tenants, and it caps annual rent increases at no more than 4 percent.

It’s Waterford’s second play in Long Beach this month. The company was among three investors that took over the beleaguered City Place Long Beach shopping center, after the mall’s previous owner defaulted on a mortgage.

Waterford also develops market-rate properties. In November, the firm filed plans for its largest ground-up project to date — a 644-unit complex in Santa Ana, estimated to cost $225 million.

[CO] — ­ Dennis Lynch 


Related Articles

arrow_forward_ios
A Los Angeles Superior Court judge blocked construction of the 19,000-home planned community in northern L.A. County (Getty, Centennial Tejon Ranch)
Judge blocks 19K-home Tejon Ranch project over environmental risks
Judge blocks 19K-home Tejon Ranch project over environmental risks
City Place Long Beach with Waterford’s John Drachman, Monument’s Benjamin Poirier and Turnbridge’s Michael Gazzano (RPALA Group, Linkedin)
Ownership trio takes over beleaguered shopping center in Long Beach
Ownership trio takes over beleaguered shopping center in Long Beach
Sheraton Pasadena and the Queen Mary (iStock)
Embattled REIT seeks to auction SoCal hotels, Queen Mary lease
Embattled REIT seeks to auction SoCal hotels, Queen Mary lease
Rendering of the RiverPark development (City of Long Beach)
Housing community proposed on former oil well water treatment site
Housing community proposed on former oil well water treatment site
SDS Capital Group CEO Deborah La Franchi and RMG Housing CEO Tim Roth. (SDS, RMG, Getty)
South LA project may be model for privately-funded supportive housing
South LA project may be model for privately-funded supportive housing
John Drachman and Sean Rawson with a rendering of the project
Waterford Property files for 644-unit rental complex
Waterford Property files for 644-unit rental complex
6156 Ramirez Canyon Road and 20 37th Place (Credit: Redfin)
This way to the beach: Homes next to ocean topped priciest sales
This way to the beach: Homes next to ocean topped priciest sales
Governor Gavin Newsom and a homeless tent encampment in Skid Row in September 2019 (Credit: Getty Images)
“Let’s call it what it is. It’s a disgrace:” Newsom on CA homeless crisis
“Let’s call it what it is. It’s a disgrace:” Newsom on CA homeless crisis
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...