California Landmark Group (CLG) has acquired the Park Grand Apartments, a 62-unit low-income housing tax credit (LIHTC) multifamily complex in Pomona, for $4.85 mil ($78k/unit). The asset, located at 850 Grand Ave, between the 57 Fwy and Diamond Bar Blvd, was fully occupied at the time of closing.
CLG acquired the property via its affiliate Park Grand Landmark LP. The purchase represents CLG’s second San Gabriel Valley-area affordable housing transaction in the last 12 months.
Park Grand Apartments was constructed in 1999 and is situated on over three acres of land. It is adjacent to Pomona’s vibrant town center and upper echelon universities. The garden style complex is comprised of 24 two-bedroom units, 32 three-bedroom units, and six four-bedroom units. Property amenities include a playground, business and community center, and lush landscaping.
The purchase of Park Grand Apartments represented an initial cap rate of 7.25% with financing being secured through a loan assumption of an existing mortgage. Since the existing mortgage was not prepayable CLG acquired the asset by making an unusually large 68% cash down payment.
According to Ken Kahan, President of CLG, “this asset became an attractive purchase because of its very low leverage and need for significant equity at the time of closing. Further, buying and managing affordable housing is a counterweight to our existing investments and developments that focus on high-end rentals and sales.”
