Jonathan Rose Companies paid $30 million for a 95-unit senior housing apartment complex in the East Bay city of Fremont, marking its 10th purchase under a $525 million fund focused on affordable housing.
The eponymous New York-based firm said in a statement that it and Wakeland Housing Development bought the mixed-income Pasatiempo Apartments, a complex at 39548 Fremont Boulevard that has dozens of Section 8 units. It financed the purchase in part with a $17.65 million loan from City Community Capital, and plans to start renovations this year.
The area is among the nation’s “most rent-burdened housing markets,” Jonathan Rose’s Nathan Taft said in the statement. “We are thrilled.”
The company expects to buy 40 properties and preserve between 5,000 and 7,000 units while adding community centers, computer-filled classrooms, social service rooms and other amenities when possible. It didn’t provide a time frame for the investments.
Pasatiempo’s unit are all one-bedrooms apart from one two-bedroom for the manager. Some 59 of them receive Section 8 rental subsidies, a contract that’s set to expire in a year. The units will all be restricted to residents who earn 80 percent of the area’s median income.
Pasatiempo Apartments, formerly owned by Victoria Investors LTD II, has two residential buildings and a clubhouse. Jonathan Rose plans to turn meeting rooms into a computer lab, fitness center, and activated community space and to hire a full-time resident services coordinator. Other renovations include in-unit improvements, the replacement of aging building systems, and reductions in carbon and water intensity.
For the fourth iteration of the fund, Jonathan Rose raised $233 million from more than 125 investors, including Deutsche Bank AG’s Community Development Finance Group, the Ford Foundation and an affiliate of Nuveen.
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