Key Highlights for Multifamily Investors:
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Middle-Income Housing Expansion: Standard Communities and Faring are leading the transformation of the Millennium South Bay Apartments (now known as AIRO @ South Bay) into affordable housing for middle-income families and essential workers.
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Strategic Location: This 230-unit mixed-use development is located near major employers like SpaceX and Tesla, as well as public transit (Metro Green Line Crenshaw Station), enhancing its appeal to the workforce.
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Investment Details:
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Acquisition Price: $140 million
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Reserves: $17.5 million allocated for long-term operational and physical sustainability
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Green Certification: The property is LEED Gold certified, featuring a solar array producing 250,000 kWh annually and reducing 195 tons of CO₂ emissions.
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Project Overview:
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- Developer Collaboration: Standard Communities partnered with Faring, CSCDA Community Improvement Authority, and the City of Hawthorne.
- Workforce Housing Goals:
- 66% of units for incomes below $82,000/year
- 33% of units for incomes at or below $66,000/year
- Tax-Exempt Financing: Leveraged by CSCDA to reduce rents for residents earning between 80%-120% of Area Median Income (AMI).
Amenities and Features:
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Modern Living Spaces: 230 studio, one- and two-bedroom apartments built in 2021.
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Lifestyle Amenities: Luxury pool deck, coworking spaces, fitness center, social lounge, retail spaces, and outdoor courtyards.
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Transit-Oriented: Proximity to Metro’s Green Line enhances accessibility for residents.
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Key Takeaways for Multifamily Investors:
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Innovative Financing: Tax-exempt bond structures provide a viable model for transforming market-rate housing into affordable housing.
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Middle-Income Focus: Addressing the growing gap in housing affordability for essential workers in California’s high-cost markets.
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Environmental Impact: Sustainable practices like solar energy align with modern investment trends focusing on ESG (Environmental, Social, and Governance) metrics.
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Demand for Affordability: With the average home price in Hawthorne exceeding $900,000, this project meets the critical need for affordable, high-quality housing.
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Why It Matters:
The Millennium South Bay Apartments project is an excellent case study in addressing housing challenges through public-private partnerships, ensuring that middle-income workers can access quality housing near employment hubs. For investors, it underscores the potential for profitable yet socially impactful ventures in multifamily real estate.
