Cypress Equity sells Glendale multifamily complex for $300M State agency acquired 494-unit Next on Lex, which will convert to workforce housing
This post was written for and originally published on 4/26/2021 on TheRealDeal.com
Another apartment complex has been acquired that will be converted into workforce housing.
Cypress Equity Investments sold the 494-unit Next on Lex complex in Glendale for $290 million, according to the Los Angeles Business Journal.
The state-funded California Community Housing Agency bought the development at 275 W. Lexington Drive. The deal is California Community’s second recent acquisition in Glendale. The agency bought the 205-unit Brio complex from Sequoia Equities earlier this month. Catalyst Housing Group will manage Brio and Next on Lex on behalf of the state, according to the report.
California Community was established in 2019, and over the last few years has pushed for the development of workforce housing, or housing roughly priced for households with incomes around the median income for the area.
The type of housing is meant to fill a gap between high-priced market-rate homes and government subsidized low-income properties.
At least two other recently built properties sold this year to state-funded investors for workforce housing conversions. Waterford Property bought the Oceanaire complex in Long Beach in March with the help of tax-exempt bonds from the California Statewide Communities Development Authority. The authority also provided bonds to Opportunity Housing Group to purchase the 161-unit Moda at Monrovia Station complex from Griffin Capital and Legacy Partners.
Cypress Equity bought Next on Lex from Century West Partners, which completed the project in 2019. The property is 92 percent leased.