NEWPORT BEACH, Calif.–(BUSINESS WIRE)–Waterford Property Company (Waterford) in partnership with California Statewide Community Development Authority (CSCDA), a joint powers authority, has announced the acquisition of 777 Place, a 472-unit multifamily property located at 777 E. 3rd Street in Pomona, CA. Waterford and CSCDA acquired the property for $149.4 million from Picerne Residential.
Waterford will immediately lower rents for qualified new residents making between 60 to 120 percent of the area median income (AMI) for the community’s non-income restricted units. Originally constructed in 1986, 777 Place was built with 94 “very low” income units, for residents making 50 percent AMI, with affordability restrictions set to expire in 2025. Waterford will extend these affordability restrictions an additional 30 years increasing the project’s “very low” income units from 94 to 157.
“We are very excited that we were able to work with the City of Pomona and the seller to create a ‘win-win’ solution to a project with expiring affordability covenants. It is very rare that you get to reinvest over $18 million into a project and lower rents. The City’s leadership on this project was remarkable and we are honored to be long-term partners with them in creating more affordable housing for their residents,” said Sean Rawson, co-founder, Waterford Property Company.
777 Place is a garden-style apartment community that benefits from a central location in downtown Pomona and adjacency to Western University of Health Sciences with access to Cal Poly Pomona and Mt. San Antonio College. Waterford will immediately initiate an $18 million rehabilitation of the property improving exterior and interior units.
“Upon taking ownership we are going to immediately lower rents 11 percent below current market rents on the market rate units and increase the number of 50% AMI units. This will be a substantial amount of savings for families, students, and essential workers in Pomona. We pride ourselves on our ability to create innovative housing solutions for cities,” said John Drachman, co-founder, Waterford Property Company.
The Pomona City Council unanimously approved the acquisition during their October 18, 2021 City Council meeting in a 7 to 0 vote. “The City of Pomona is pleased to partner with Waterford and the CSCDA in positioning the 777 Apartments for another 30 years of affordability. We see this as a positive piece to the larger effort of addressing the dire need for affordable housing solutions in California,” said Kirk Pelser, Pomona Deputy City Manager.
Waterford now administers 11 communities in Southern California that have been converted from market rate to essential housing bringing its portfolio to 3,220 units and over $1.8 billion of tax-exempt bond issuances, confirming the firm as the most active sponsor in CSCDA’s middle income housing program in California.
Waterford Property Company is a diversified real estate investment and development company with an established track record in the acquisition and development of over $2 billion in multifamily and commercial properties. Its expertise includes developing mixed-use multifamily projects throughout California, developing and investing in affordable housing and repositioning existing commercial properties. It is led by its co-Founders John Drachman and Sean Rawson. For more information, visit www.waterfordco.com.
CSCDA is a joint powers authority founded by the League of California Cities and the California State Association of Counties in 1988 to enable local government and eligible private entities access to low-cost, tax-exempt financing for projects that provide a tangible public benefit, contribute to social and economic growth and improve the overall quality of life in local communities throughout California. CSCDA is comprised of more than 530 cities, counties and special districts, and has issued more than $65 billion through 1,700 plus transactions across its diverse public benefit financing programs. For more information, visit www.cscda.org.