By Justin Estrada, Development Associate, ROEM Development Corp
In addition to designing and building housing from the ground up, ROEM employs similar complex financing strategies to acquire and rehabilitate existing properties in order to preserve, reenergize and expand a city’s affordable housing stock. This includes the acquisition of existing market-rate communities, which are rehabilitated and converted to affordable housing.
An example of this reinvestment strategy is ROEM’s recent purchase and complete renovation of Delta View Apartments, an affordable development with 205 cottage-style units on 11 acres at 3915 Delta Fair Blvd. in Antioch. The $22 million sale and refinancing through tax exempt bonds and low-income housing tax credits enabled the property’s first major upgrade since it was built in the 1960s. Every unit received new cabinets, sinks, countertops, flooring, windows, doors, Energy Star appliances, faucets, fixtures and energy-efficient modern HVAC systems. ROEM added community space, increased the number of accessible units to 11, and upgraded the property’s security system. ROEM completed the entire rehabilitation within 10 months and provided residents with temporary housing when their unit was under construction.
Delta View Apartments will remain affordable to low-income residents for another 55 years and at a wider range of affordability than prior to the acquisition: 182 units are designated for families earning 60 percent of Contra Costa County’s area median income (AMI) and 21 units are reserved for even deeper affordability at 50 percent AMI (two are manager units). All units have 2 bedrooms and 1 bathroom. The property is fully leased.
In a similar transaction, ROEM recently completed the $22.5 million purchase of Polo Run Apartments at 8165 Palisades Dr. in Stockton. In this case, ROEM will be converting the market-rate property to a completely affordable community for families earning up to 60 percent of San Joaquin County’s area median income. Built in 1979, 19-acre Polo Run includes 320 units in 34 buildings, with two pools and spas, a fitness center, a clubhouse, and two community BBQ areas.
ROEM has 500 acquisition rehab units under construction, and we look forward to adding more to our portfolio as we continue pursuing property acquisition investments.