The Rose Affordable Housing Preservation Fund V Buys 313 LIHTC Units for $223M

The Jonathan Rose Companies’ The Rose Affordable Housing Preservation Fund V has acquired the Kings Villages Apartments in Pasadena for $223 million. The property includes 313  LIHTC and HUD-regulated Section 8 and Section 42 LIHTC units.

According to Nathan Taft, Senior Managing Director of Acquisitions at Jonathan Rose Companies, the fund closed the acquisition in record time, reflecting the imminent need for affordable housing in Southern California. The problem is so severe that the State legislature has proposed several bills this year that would help to improve the affordable housing stock. SB 6, AB 115, and SB 15 will drive housing development in the state.

Fragmented funding options has made affordable housing a challenging asset class for investment. Costs are a major challenge in the affordable housing market segment, and it requires multiple funding sources, which leads to fragmented and complex deals that are often too challenging to develop. A report published earlier this year sponsored by Capital One from the Terner Center for Housing Innovation at the University of California Berkeley highlights the fragmented nature of affordable housing and calls for more streamlined alternatives.

Located at 1141 North Fair Oaks Avenue in Pasadena, CA, Kings Villages Apartments was built in 1971. It features a mix of one-, two, three-, and four-bedroom floor plans spread over 58 buildings in a garden-style complex. The property is also equipped with an impressive suite of amenities for an affordable property, including clubhouse, swimming pool, on-site laundry facility, two playgrounds, a basketball court, and leasing office.

The new ownership plans to augment these amenities with on-site services. It is working with local organizations to provide computer-equipped classrooms, health and wellness rooms, exercise facilities, and community gardens. Theses initiatives have been curated to aid residents with a range of health, educational, and social services. The fund will also implement green and sustainability measures at the property. These are all part of the fund’s “Communities of Opportunity” mission.