Jonathan Rose Cos. has purchased Mission Gardens Apartments, a 50-unit affordable senior housing community in Santa Cruz, Calif. A partnership between Reiner Communities and Las Palmas Housing sold the asset. CBRE Senior Vice President Taylor Froland brokered the sale.
The new owner acquired the community in partnership with nonprofit First Community Housing, while Walker & Dunlop provided the financing through the Federal Housing Administration 223(f) loan program. Other entities involved in the transaction include the City of Santa Cruz, HUD, CalHFA and the California Tax Credit Allocation Committee.
Mission Gardens serves low- to very low-income households that earn up to 50 and 60 percent of the area median income. All 50 units are under a project-based Section 8 contract that was extended by Rose for another 20 years. Furthermore, the new owner worked with the City of Santa Cruz to amend its regulatory agreement in order for the community to remain affordable in perpetuity.
READ ALSO: How Will the Affordable Senior Housing Gap Be Filled?
Mission Gardens comprises seven buildings that came online in 1981. The community incorporates one-, two- and three-bedroom floorplans ranging between 644 and 960 square feet. Common-area amenities include a community room, an elevator, laundry facilities and approximately 55 parking spaces.
Jonathan Rose will start renovating the property. The company will also provide social services, due to its commitment to creating Communities of Opportunity.
Located at 90 Grandview St., the community is 2 miles from central Santa Cruz. Mission Gardens is within walking distance of several dining options, a Farmers’ Market and green areas such as Moore Creek Preserve.
Preserving the affordable stock
Mission Gardens represents one of the only affordable housing properties in the Westside neighborhood. Jonathan Rose CIO Nathan D. Taft said, in prepared remarks, that the first step in addressing the affordable housing crisis is preserving the existing communities.
At the end of last year, Jonathan Rose acquired a market-rate community in San Jose, Calif., for $102 million. The company plans to convert the 331-unit apartment complex to affordable housing.
