Aspen Plans on Adding Workforce Housing to San Bernardino Apartments After Acquisition
Echo Apartment Homes, a 38-unit multifamily community in San Bernardino, California, has been purchased by Aspen Real Estate Financial LLC (AREF) for $12.3 million from Positive Investments of Arcadia, California.
It was acquired in partnership with the Housing Authority of the County of San Bernardino (HACSB) and CalAHA.
The deal for the property at 505 East Rialto Avenue went for approximately $323,000 per unit and was the second AREF acquisition with this structure in the past 12 months.
In September 2024, Aspen partnered with Stanislaus Regional Housing Authority and CalAHA to acquire Rumble Road Apartments in Modesto, California. As part of the deal, the housing authority is receiving 100% of the property’s cash flow.
The HACSB, on a 40-year lease to own Echo, will begin implementing a workforce housing platform at the property, where the rent levels are structured to fall within certain household income levels.
Echo comes with larger-than-typical unit sizes. It comprises 26 two-bedroom units averaging 1,059 square feet, six three-bedroom units averaging 1,192 square feet and six four-bedroom units averaging 1,248 square feet.
Each unit includes stainless steel appliances, a refrigerator, a dishwasher, a microwave, a garbage disposal, a washer & dryer, plank flooring and a large covered patio.
Community amenities include covered parking, controlled access, a multi-sport court, professional on-site management staff and 24-hour on-site maintenance.
Matt Benwitt, associate of Lee & Associates in LA North/Ventura, said what made the community attractive was its newer construction date (2022) and low density of only 13 units per acre.
“Workforce housing is very limited, especially in a newly built property,” Benwitt said. “Due to required rent levels for a project to make economic sense, new construction is typically limited to either tax credit affordable projects or high-end class A properties.”
Echo provides workforce housing in new construction for individuals whose income is too high to qualify for affordable properties or who cannot afford a new Class A property.
Source: GlobeSt/ALM