(EDITOR’S NOTE: The property sold for about $480,226 per unit.)
Newport Beach, CA – Waterford Property Company (Waterford) in partnership with California Statewide Community Development Authority (CSCDA) has announced the $127.26 million acquisition of 1818 Platinum Triangle, a 265-unit apartment community at 1818 S. State College Boulevard in the Anaheim Platinum Triangle.
With this acquisition, Waterford continues to build its leadership in essential housing. This transaction marks the firm’s third community acquired in Anaheim with CSCDA. Waterford now has nine communities it has converted from market rate to essential housing bringing its portfolio to 2,643 units and over $1.6 billion of tax-exempt bond issuances, making the firm one of the most active sponsors in the state.
Upon taking ownership of 1818, Waterford, as administrator, and CSDA will immediately lower rents for qualified new residents making between 60% to 120% of the area median income (AMI) under CSCDA’s middle income housing program. Waterford anticipates average rental savings of 24.5% for qualified tenants compared to current Market Rents within the Platinum Triangle. Additionally, annual rent increases would be capped at no more than 4 %. Existing tenants that do not meet the income restrictions are allowed to remain in place until they elect to move.
“This innovative financing structure immediately serves a public need plus there will be a rental preference for those who live and work in the city of Anaheim as the city wants this housing to be accessible to first responders and school district employees, among others. We’ve been approached by a number of school districts that are in dire need of housing for teachers which is why we are enthusiastic about implementing this program in order to keep essential workers in the city and close to their jobs.”” said Sean Rawson, co-founder, Waterford.
“Orange County is one of strongest multifamily markets in the country and market rate rents have risen over 17 percent this year with vacancy rates being some of the lowest in the country. As more and more landlords continue to aggressively raise rents in this environment, these Essential Housing projects continue to be an important tool for cities to offer tenants discounted rents in quality apartment communities,” said John Drachman, co-founder, Waterford.
The Anaheim City Council voted 7 to 0 during its September 28 city council meeting to approve the acquisition. Anaheim Councilmember Trevor O’Neil commented, “What is being brought forward is a win for the workforce that needs this housing.”
Joseph Smolen, Geoff Boler, and Lee Redmond represented the buyers in this transaction as well as the seller, UDR.
Waterford Property Company is a diversified real estate investment and development company with an established track record in the acquisition and development of over $2 billion in multifamily and commercial properties. Its expertise includes developing mixed-use multifamily projects throughout California, developing and investing in affordable housing and repositioning existing commercial properties. It is led by its co-Founders John Drachman and Sean Rawson.
CSCDA is a joint powers authority founded by the League of California Cities and the California State Association of Counties in 1988 to enable local government and eligible private entities access to low-cost, tax-exempt financing for projects that provide a tangible public benefit, contribute to social and economic growth and improve the overall quality of life in local communities throughout California. CSCDA is comprised of more than 530 cities, counties and special districts, and has issued more than $65 billion through 1,700 plus transactions across its diverse public benefit financing programs.
