Nonprofit affordable multifamily development and management firm BRDIGE Housing has closed on the $66.8 million purchase of Eaves Daly City, a 195-unit workforce housing community located at 500 King Dr. in Daly City, Calif. The company picked up the property from AvalonBay Communities in a transaction subject to $60.6 million in loans from Morgan Stanley and National Equity Fund, according to Yardi Matrix information.
Additionally, the firm self-originated $11 million in debt funds for the purchase, the same source shows. BRIDGE intends to invest $23 million in several years’ worth of capital improvements to both the property’s apartments and community spaces.
BRIDGE’s purchase of Eaves Daly City is the third acquisition in a joint investment venture with the loan providers, which sponsored $250 million in funding for the acquisition, preservation and improvement of affordable housing communities along the West Coast. In 2020, the former firm subsidized BRIDGE’s ESG bond with $100 million in taxable social bonds.
Changes and preservations
Eaves Daly City was built in 1972 and has historically been geared towards low- to middle-income renters. The property traded twice prior to its new ownership; AvalonBay acquired it in 1997 for $13.8 million from private owners that picked it up 10 years prior for $1.4 million less, Yardi Matrix data shows.
Alongside its renovations across the property, BRIDGE plans to perpetually income-restrict more than half of the community’s homes for residents earning 80 percent or less of the area median income. The new owner will also provide management services across the community.
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Presently, Eaves Daly City is spread across 11 buildings, sectioned into studio, one- and two-bedroom apartments averaging 725 square feet. It is complete with both loft-style and townhome arrangements.
The pre-furnished homes feature fully-equipped kitchens with select units including private balconies and patios. On-site, renters have access to a swimming pool, fitness center, lounge, spa and grilling areas. There are concierge and laundry services as well.
Situated in the Bay Area’s Serra Highlands neighborhood, Eaves Daly City has quick access to employment and educational opportunities with central Daly City sitting 2.5 miles to the North. Downtown San Francisco a further 6 miles in the same direction, while Oakland and San Jose lie 15 and 40 miles Northeast and Southeast, respectively.
Affordable expansion in the Golden State
BRIDGE Housing’s portfolio of affordable properties around the Golden State spans 123 properties, according to Yardi Matrix. The firm has had a recent flurry of development and investment activity in the Los Angeles and San Diego areas.
In April, the firm, in a joint venture with The City of Carlsbad, broke ground on 1380 Laurel Tree, a 70-unit affordable community in Carlsbad. One month prior, it received a $10.5 million refinancing of a construction loan for Park Place at Jordan Downs, an 80-unit development in Los Angeles. The funds for the project were provided by Fannie Mae.
