Bridge Housing has provided an affordable housing lifeline to the Bay Area after it acquired the Avalon Communities Daly City property for $66 million.
The property is located at 500 King Drive and is owned by the ‘Eaves’ brand. The 642-unit community, 140,000 square feet, sold for more than three times its market value of $21 million, according to property records.
Apartments in the community range from approximately 450 to 1,000 square feet and offer studio, one and two bedroom options. Market rents range from $2,100 to $3,200.
Affordable housing is provided to individuals whose income does not exceed 50 percent of the area’s median income.
Bridge’s goal is to retain these products in markets that desperately need affordability.
“It’s a huge problem anywhere,” said Bridge’s Jet Doye. real deal. “We can’t build enough affordable housing to deal with the affordable housing crisis, and if you lose your units, there’s no way around it.”
“Putting together a low-income housing capital system could require 12 different financing partners, which could take anywhere from two to five years,” Doye added. “During this period, the nonprofit developer took on the cost risk, the construction cost risk, and the interest rate risk. Also, you tend to find a gap between areas with higher costs and deeply engaged citizens who don’t want to build multifamily housing in their neighborhoods. Correlation.”
To secure funding, Bridge partnered with Morgan Stanley and the Nation Equity Fund, believing this partnership will allow them to compete with aristocratic investors and developers.
“It gives us the flexibility and speed we need to enter the acquisition market,” Doe said. “It’s a lot faster than what’s on the ground. It allows us to add more affordable housing to these communities.”
This is the second acquisition for Bridge, which also acquired marin county property. Bridge also teamed up with Morgan Stanley and NEF to buy the Terra Linda Northview condos in San Rafael last September for $12 million. The goal is to ensure that 125 units are limited to 80% of the AMI for 99 years.
