Standard Communities and Faring have made another acquisition as part of its joint venture that’s looking to create $2 billion worth of middle-income housing in California.
The joint venture, alongside the California Statewide Communities Development Authority and the city of West Hollywood, acquired The Crescent at West Hollywood Apartments in Los Angeles from an undisclosed seller. According to Standard Communities, the transaction’s total capitalization is approximately $100 million, which includes the purchase price, renovation costs, transaction costs and professional services.
Built in 1985, the 130-unit community offers one- and two-bedroom apartments that range from 480 to 906 square feet. Under the joint venture’s ownership, the units will be transitioned from market-rate to middle-income housing for those making between 80 percent and 120 percent AMI. Chris Cruz, managing director of essential housing for Standard Communities, said in prepared remarks, that someone making up to 80 percent AMI could save as much as $1,200 per month by renting at The Crescent at West Hollywood Apartments, as compared to other market-rate communities in West Hollywood.
The five-story community also offers a pool, spa, fitness center, outdoor fireplace lounge, movie screening room, courtyard, on-site laundry facility, package lockers, and barbecue areas. Cruz said in prepared remarks that the new ownership has approximately $6 million slated for renovations to the community that will include deferred maintenance and improvements to common areas and unit interiors.
MAKING MORE MIDDLE-INCOME HOUSING
The Crescent at West Hollywood Apartments will mark the sixth middle-incoming housing transaction for the joint venture between Standard Communities and Faring. The two companies formed the venture in August 2021 with the goal of creating $2 billion of middle-income housing throughout California in a span of two years.
The joint venture, under the name Standard-Faring Essential Housing, is looking at both acquisitions and ground-up developments and is working with the CSCDA’s Community Improvement Authority on a number of communities. In December, the state agency acquired a two-building property in Pomona, Calif. for $130 million, tapping Standard-Faring Essential Housing as the project administrator. In January, the joint venture also acquired a 230-unit community in Hawthorne, Calif. for around $140 million, again partnering with CSCDA.