Standard Communities, a major national affordable housing developer and investor, has acquired a 100% affordable housing portfolio valued at over $1 billion consisting of over 6,000 apartment homes in more than 60 communities in four states.
With this transaction Standard enters three additional states—Arizona, Colorado and Texas—while significantly growing its California portfolio to nearly 11,000 apartment homes.
Home to over 13,000 residents, the more than 60 communities in the portfolio serve a mix of families and seniors. The properties, on average, were built in 2002 and a majority were developed by the seller.
Standard will invest over $30 million in capital improvements and deferred maintenance across the portfolio with no residents being displaced to ensure the communities remain affordable and resilient for years to come.
“In a market environment considered challenging, Standard is experienced and well positioned to finance and complete large and highly complex multi-state acquisitions relying on the skills, creativity and knowledge of our team,” said Jeffrey Jaeger, Co-Founder and Principal at Standard Communities. “Our strategic planning in this difficult interest rate environment has allowed us to enter into new states, greatly expand our portfolio and continue to invest in people’s futures by offering them affordable places to live.”
Standard led public-private partnerships with multiple government agencies including HUD, Fannie Mae, Freddie Mac, state governments in Arizona, California, Colorado and Texas and several local housing authorities to preserve long term affordability through the various federal, state, and local programs in place across the projects including Low Income Housing Tax Credits.
“Our unique acquisition underscores the complexity and scale that our team managed in a challenging environment in both the debt and equity capital markets,” said Chris Cruz, Senior Managing Director, Essential Housing at Standard Communities.
“We took control of these properties by acquiring general and limited partnership interests, including controlling interests of managed tax credit funds with institutional investors. It also included the purchase of various third-party subordinate notes to optimize partnership economics. We navigated new financing facilities, tax credit investor partners, non-profit partners, ground lease buyouts and loan assumptions with numerous governmental and private lenders simultaneously on a fixed timeline. This required our highly coordinated efforts, deep expertise and focus on our mission to create more vibrant, sustainable and affordable communities,” said Mr. Cruz.
He added, “We are actively pursuing additional large-scale opportunities like this. We’re uniquely positioned to handle sizable portfolios amid increasing consolidation within the industry. We expect portfolio acquisitions to continue to play a key role in our growth, and we have significant capital ready to support these strategic investments.”
Based in New York and Los Angeles, Standard has a portfolio of nearly 27,000 apartment units and more than $5 billion in assets under management across 21 states and Washington, D.C. With expertise in development, acquisitions, renovations and construction, Standard Communities strives to cultivate long-term public and private partnerships to produce and preserve high-quality, affordable and environmentally sustainable housing.
