Lee & Associates, the largest broker-owned commercial real estate firm in North America, announced that its LA North/Ventura office has brokered the acquisition of Echo Apartment Homes.
Echo Apartment Homes is a 38-unit multifamily community located at 505 East Rialto Avenue in San Bernardino, California to Aspen Real Estate Financial LLC (AREF) in partnership with the Housing Authority of the County of San Bernardino (HACSB) and CalAHA for $12.3 million (approximately $323,000 per unit). This is the second AREF acquisition with this structure in the past 12 months. In September 2024, the company partnered with Stanislaus Regional Housing Authority and CalAHA to acquire Rumble Road Apartments in Modesto, California.
The HACSB, on a 40-year lease to own the property, will begin implementing this workforce housing platform at the property where the rent levels are structured to fall within workforce housing levels. Housing Authorities along with their city or school district partners do not have to provide funds for this program. AREF handles the capitalization of the acquisition, along with adequate reserves to cover lease payments and operating expenses in recessionary periods. This program is a long-term lease to own, where AREF donates all the equity and upside value to the Housing Authority. Additionally, the housing authority gets 100% of the cash flow from the property.
“Workforce housing plays a vital role in addressing the gap between subsidized housing and market-rate rents,” said Rishad Mitha, Deputy Executive Director for HACSB. The purchase of Echo Apartments is an opportunity for us to bring new housing opportunities to the community, including opportunities for those often overlooked in traditional housing markets without the need for a large capital contribution. We are excited about our partnership with Aspen Real Estate Financial to make this purchase, which made good financial sense for the Housing Authority and aligns with our mission to provide housing opportunities.”
Matt Benwitt of Lee & Associates LA North/Ventura represented the buyer in the transaction and is the exclusive broker for AREF. The seller was represented by Cray Carlson of CBRE. Nick Benjamin and Tom Lewis of CalAHA CEO and legal counsel participated in the lease to own structure for their Housing Authority of the County of San Bernardino. Rishad Mitha, Deputy Executive Director of Housing Authority of County of San Bernardino and their employees undertook the due diligence for the formation of the lease.
“We continue to see a huge shortage of workforce housing in Southern California and across the United States as market rents continue to climb,” said Matt Benwitt, Associate, Lee & Associates LA North/Ventura. “Unlike the typical rent restricted development projects which can take years to provide, AREF’s program focuses on existing Class A or B properties where the benefits are immediate. AREF is focused on acquiring new or nearly new Class A and B multifamily properties in California where it can implement its program.”
“Echo Apartments represents a landmark transaction for the City of San Bernardino, achieving the highest price per unit in over two decades,” said Carlson, senior vice president at CBRE. “This sale not only reflects the strength of the Inland Empire multifamily market but also highlights the positive impact that strategic public-private partnerships can have on the community. The Housing Authority’s involvement was essential in aligning investment with long-term housing goals, helping to ensure that this development contributes meaningfully to the stability and growth of the local area.”
Each unit at Echo Apartment Homes includes stainless steel appliances, including refrigerator, range, dishwasher, microwave, and garbage disposal, full-sized, side-by-side washer & dryer, plank flooring and large covered patio. Community amenities include state-of-the-art multi-sport court, covered parking, controlled access, professional, on-site management staff and 24-hour on-site maintenance.
