Partnership Snaps Up Properties to Help Preserve Essential Rental Housing

Middle-income renters battling rising housing costs in California are getting some welcome relief. Newport Beach-based Lyon Living recently sold three properties in Escondido to a public-private partnership that has been snapping up California properties to help preserve essential rental housing. Waterford Property Company and the California Statewide Community Development Authority (CSCDA) recently partnered to buy the 314-unit Lyon Living portfolio for $157 million.

“The state is issuing tax-exempt bonds to acquire multifamily properties where they can preserve or lower rents to a level that serves the forgotten middle – the first-responders, teachers and other professions that provide a critical backbone to our communities,” said Kyle Pinkalla, managing director of Northmarq’s San Diego office. Pinkalla and Erik Anderson, associate vice president, represented the seller in the transaction.

All three of the properties are class-A newer built assets. The 126-unit Rowan Apartments was completed in 2021, the 112-unit Alcove Apartments in 2019 and the 76-unit Haven76 Apartments in 2014.

The low-cost bond financing allowed the buyers to be aggressive on pricing with units selling at $500,000 per unit. As part of the CSCDA’s middle income housing program in California, the communities will now serve residents making between 60 and 120 percent of the area median income for San Diego County.