The California Statewide Communities Development Authority and affiliated Community Improvement Authority have acquired Monterey Station in eastern Los Angeles County from Clear Capital for $130 million, or $372,493 per unit. The two-building property is in an Opportunity Zone in downtown Pomona, Calif.
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Constructed in 2014, Monterey Station is located at 180 E. Monterey Ave. and contains a mix of studio, loft/studio, live-work, one- and two-bedroom units, averaging approximately 662 square feet. The property’s live-work units allow for commercial uses to meet the Work from Home or hybrid work needs of residents.
Unit features include above-standard ceiling heights, a private balcony/patio in the largest of the two-bedroom apartments, and washers/dryers and microwave ovens. Resident amenities include a fitness center, a clubhouse, a dog park, a swimming pool, a spa and a media room.
The LEED Silver building is within walking distance of mass transportation, including the Metrolink Downtown Pomona Station. It is close to the Downtown Pomona Arts Colony, the Lincoln Park Historic District, and shopping and dining venues.
The CSCDA Community Improvement Authority provides California’s local governments with an effective tool for the timely financing of community-based public benefit projects. Standard-Faring Essential Housing serves as the project administrator, managing Monterey Station on behalf of the organization.
Standard Communities and Faring formed a $2 billion joint venture in August to develop middle-income housing in California over the next 18 to 24 months. The joint venture will operate as Standard-Faring Essential Housing and will develop both ground-up apartments and the acquisition and conversion of existing apartments.
“Creating high-quality, affordable housing that supports vibrant communities is key to combating the national housing crisis. Standard-Faring Essential Housing’s public-private partnerships fill a crucial need for workforce housing in Pomona and elsewhere in California, helping to ensure that middle-income families and essential workers have housing opportunities close to their jobs in the communities they serve,” Chris Cruz, managing director of essential housing for Standard Communities, told Multi-Housing News.
There are 28 residential properties, totaling 3,325 units, within 3 miles of downtown Pomona, with two properties, totaling 708 units, under construction and another in the planning stage that would add 57 units, according to Yardi Matrix. In the past five years, seven multifamily properties have traded hands, recording an average sale price per unit of $218,686.
Clear Capital owns and operates multifamily properties totaling more than 5,000 units throughout the country’s Western, Mountain and Sunbelt regions. The seller purchased Monterey Station from Realm Real Estate in February 2017 for $84.5 million, or $242,120 per unit. The company noted it was able to sell this property for 54 percent over the purchase price by adding enhanced security with new auto and pedestrian gates, security cameras and lighting in common areas, among other upgrades.
“The sale of Monterey Station represents a great ending to the year for Clear Capital, where our value-added strategy again delivered excellent returns to our investors,” Greg Worchell, managing partner with Clear Capital, told Multi-Housing News. “We’re thrilled that interest from new clients is so high and look forward to many exciting opportunities in 2022.”
Clear Capital was represented by CBRE Group Executive Vice Presidents Dean Zander and Stewart Weston. The buyer was represented in-house.