Waterford Property venture acquires luxury rental complex from Carmel Partners

$300M deal for 500-unit Glendale complex targets conversion to middle-income tenants

Los Angeles /
Apr.April 27, 2021 01:49 PM
The Altana Complex and Waterford CEO John Drachman (Waterford)
The Altana Complex and Waterford’s John Drachman (Waterford)

UPDATED, 2:40 p.m., April 27: A Waterford Property Company partnership has closed on its fourth deal this year to convert a rental building to middle-income housing.

The Waterford venture paid $300 million for the 507-unit Altana, a luxury complex in Glendale. The partnership was with California Statewide Communities Development Authority, which issued the Newport Beach-based firm $339 million in tax-exempt bonds for the purchase.

The seller was not disclosed, but sources confirmed to The Real Deal that it was Carmel Partners. In January, Carmel paid a $1 million fine to the federal government for its role in an infamous pay-to-play scandal involving former Los Angeles City Councilman Jose Huizar.

Ron Zeff
Carmel Partners CEO Ron Zeff

The Altana conversion will not take place overnight, but will lower rents for new tenants who earn between 80 and 120 percent of the area median income, according to a joint press release from Waterford and CSCDA. Though the complex has been a luxury property, existing residents could qualify if they meet the AMI requirements. They could opt in at the lower rents when they renew. Rents at the building — at 633 N. Central Ave. — cannot increase by more than 4 percent a year.

The Altana is the fifth and largest deal this year in which the CSCDA teamed with a buyer to target middle-income tenants, according to its website. The authority has partnered with Waterford on four of those purchases, including the $120 million acquisition of a 200-unit complex in Long Beach.

Last week, CSCDA teamed with Opportunity Housing Group to buy a 261-unit complex in Monrovia for $100 million, which will also be converted.

Workforce housing developments usually don’t qualify for state subsidies, said CSCDA managing director Jon Penkower. Historically low interest rates have helped the authority take part in the program, he added.

According to its website, the CSCDA is a joint powers authority created 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.

The Altana acquisition was first reported in Commercial Observer, but the publication did not disclose the seller.

This story has been updated to reflect that CSCDA is a joint powers authority.


Related Articles

arrow_forward_ios
Harry Sidhu, Mayor of Anaheim (Getty Images)
Feds probe Anaheim mayor over Angel Stadium sale
Feds probe Anaheim mayor over Angel Stadium sale
1633 Victory Boulevard, Glendale and Senior Planner at City of Glendale Dennis Joe (Google Maps, LinkedIn)
New owner wants to enlarge controversial Glendale hotel project
New owner wants to enlarge controversial Glendale hotel project
Anaheim Angels owner Arte Moreno and rendering of new stadium site (SRB Management, Getty Images)
City cuts new affordable housing deal with Moreno on Angel Stadium sale
City cuts new affordable housing deal with Moreno on Angel Stadium sale
Mayor Eric Garcetti and LA County General Hospital at 1200 State Street (Getty)
LA County looks at redeveloping historic General Hospital
LA County looks at redeveloping historic General Hospital
Anaheim mayor Harry Sidhu and theTampico Motel at 120 South State College Street (Getty, LoopNet)
Anaheim buys blighted motel to create affordable housing
Anaheim buys blighted motel to create affordable housing
Molina Wu Network's John Molina and Community Hospital Long Beach at 1720 Termino Avenue (Facebook, City of Longbeach)
State demands closed Long Beach hospital be offered to affordable housing builders
State demands closed Long Beach hospital be offered to affordable housing builders
From left: Harry Sidhu, mayor of Anaheim; Art Moreno, owner, Los Angeles Angels; Rob Bonta, state attorney general (Getty Images, City of Anaheim, iStock)
Anaheim clears way for stadium sale with $123M for affordable housing
Anaheim clears way for stadium sale with $123M for affordable housing
3377 West Olympic Blvd (Google Maps)
K-Town developer proposes 7-story apartment complex
K-Town developer proposes 7-story apartment complex
arrow_forward_ios

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

Loading...