Affordable Apartments Soon to Have Transit Proximity

Delta View will remain affordable even after ownership change.

ANTIOCH, CA— Delta View Apartments became affordable housing in 2000. Under affordability provisos, tenants’ incomes must not exceed 60% of the median income of Contra Costa County. The complex recently changed hands, but will remain affordable under the current regulatory agreement. ROEM Development Corporation based in Santa Clara, CA purchased the apartments from PAP Delta View LLC for $22 million.   Both companies are affordable housing developers. ROEM Development Corporation has designed residential projects, specializing in affordable family and senior housing, infill multi-family market-rate housing, and mixed-use, mixed income and mixed-density programs. The transaction was a re-syndication of  Section 42 Low Income Housing Tax Credits. Colliers ‘ senior vice president, Mark J. Feldman , represented both the buyer and seller in the transaction. “Apartment properties in the Bay Area have experienced incredible rent growth and have become increasingly unaffordable to working class renters over the past five years,” said Feldman. “Properties like Delta View afford these residents a newly renovated and a sorely needed affordable place to live.” Feldman added that the property is located at 3915 Delta Fair Blvd., within walking distance of a regional mall, Los Medanos College and in close proximity to major transportation arteries. A BART station also is expected to be completed in 2018, just three miles from Delta View Apartments. The fully leased apartment complex features 205 apartment units in 32 buildings on 11 acres. Built in 1963, each cottage-style apartment home offers two bedrooms and one bath. The complex also features a leasing center, laundry facilities, a pool and children’s play area. Alan Collenette , executive managing director for Colliers, tells GlobeSt.com: “Although rent is typically under 10% of a company’s overhead, eventually, the incremental increases have an effect on bottom lines. Equally concerning is the cost of housing for San Francisco workers, with rents and home prices having risen 30% in two years.” Adds Collenette, “This puts heavy pressure on wages. Additional items such as gross receipts tax and the former payroll tax combine to make other parts of the country tempting for companies that have the inclination to outsource or relocate. It is not reasonable to expect that this utopian environment for building owners can be sustained indefinitely. Whether the correction will be dramatic and sudden, or gradual and shallow, depends as much on fate and luck as it does on analytical science.”