Standard Communities buys 350-unit complex in Carson

$200M deal is latest with state joint powers authority to turn market-rate into workforce housing

Standard Communities Co-Founders Scott Alter and Jeffrey Jaeger with the Union South Bay complex (Standard Communities)
Standard Communities Co-Founders Scott Alter and Jeffrey Jaeger with the Union South Bay complex (Standard Communities)

Standard Communities has again teamed up with California Statewide Communities Development Authority to buy a market-rate rental complex. And as with the two previous deals, this property will be converted into middle-income housing.

In the latest purchase, the partnership paid $220 million for the 357-unit Union South Bay in Carson.

The CSCDA — a joint powers authority — provided $215.7 million in tax-exempt bonds for the purchase at 615 E. Carson St. The complex includes 28,000 square feet of retail space, a fitness center, pool and bar.

Standard co-founder Jeffrey Jaeger said the firm is looking to “play a growing role” in developing middle-income housing. The previous two acquisitions were similarly structured. Last month, Standard teamed up with CSCDA to pay $100 million for a 143-unit complex at 3909 San Fernando Road in Glendale. And in December, the two joined on another Carson complex, paying $78 million for a 150-unit development.

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For the Union South Bay complex, Standard will price the units between 80 and 120 percent of area median income. In 2018, the median household income in Carson was $78,187, according to U.S. Census Bureau data.

Standard agreed to a similar measure in the December acquisition, and capped rent increases at 4 percent annually in that deal.

Over the last year, CSCDA has acquired 10 market-rate multifamily properties across the Los Angeles area in partnerships with Standard, Waterford Property Company and Opportunity Housing Group. Rent prices take effect immediately for incoming residents.