LIVERMORE, CA - Catalyst Housing Group and the California Community Housing Agency announced the $49 million acquisition of The Arbors, a 162-unit rental property in Livermore, CA. In addition to investing $5 million in significant interior, exterior and common area enhancements, Catalyst and CalCHA will transition the currently market-rate property to a rent-restricted community serving middle-income households earning no more than 120% of Alameda County's median income.
"The Arbors is what most in the apartment industry would call a value-add investment opportunity, which often results in significantly higher rents and displacement of the existing tenant population," said Jordan Moss, Founder of Catalyst. "Our unique partnership with CalCHA protects existing tenants from the threat of displacement, provides our public partners with an immediate supply of desperately-needed middle-income housing, and guarantees the future affordability of that housing by placing palatable caps on future rental increases."
Founded in 2015, Catalyst delivers greater affordability to the middle-income essential workforce through the acquisition, development and management of rent-restricted apartment communities. Upgrades to The Arbors will reflect Catalyst's commitment to enhancing the lives of its residents through its focus on the intersection of housing, innovation and social impact. In addition to driving incremental affordability through the introduction of innovative multifamily management solutions, tools and partnerships, Catalyst will partner with its nonprofit arm, the Essential Housing Fund, to provide discounted rental rates to local public-school teachers.
"California is desperate for quality housing like this for the middle-income workforce," said Linda Mandolini, President of Eden Housing, a non-profit leader in the provision of high-quality affordable housing. "Catalyst's innovative capital structure complements the work the non-profit housing providers are doing while not eating up any of our resources. They can acquire and offer middle-income housing quickly, creating real solutions for this key segment of the population."
Originally developed in 1985 as a market-rate rental community, a portion of The Arbors was restricted to low-income households in 2002. However, The Arbors' affordability covenants expired in 2012, at which time it reverted to a fully market-rate property.
"The City of Livermore shares common goals with Catalyst and CalCHA of creating and preserving housing for the missing-middle," said Livermore Mayor John Marchand. "On behalf of the City, I am thrilled that the much-needed affordability that 'The Arbors' once provided will not only be restored, but will be expanded such that 100 percent of the property will perpetually serve our essential middle-income households."
Since launching their middle-income housing partnership in 2019, Catalyst and CalCHA have successfully acquired in excess of $550 million of premier multifamily rental communities throughout Northern California. These formerly market-rate properties – The Arbors (Livermore, CA), Serenity at Larkspur (Larkspur, CA), Verdant at Green Valley (Fairfield, CA) and Annadel Apartments (Santa Rosa, CA) – have all since been converted to rent-restricted communities serving middle-income households.
"As a Mayor and advocate for healthy communities for the past six years I know the importance of creating and maintaining affordable and workforce housing," said Mayor David Haubert of Dublin, CA. "I'm encouraged to see this model take shape in the Tri-Valley area."