MODESTO, CALIF. — Aspen Real Estate Financial (AREF), in partnership with Stanislaus Regional Housing Authority and California Affordable Housing Agency (CalAHA), has acquired the 50-unit Rumble Road Apartments in Modesto for $17 million, or $340,000 per unit.
AREF handles 100 percent of the total capitalization of the acquisition, along with reserves to cover lease payments and operating expenses. The program is a long-term lease to own, where AREF donates all equity and upside value to Stanislaus Regional Housing Authority.
Stanislaus Regional Housing Authority, on a 35-year lease to own the property, will begin implementing a workforce housing platform at the property where the rent levels are structured to fall within moderate income housing as defined by HUD at 80 percent to 120 percent of area median income.
Located at 2531 W. Rumble Road, the community offers 10 one-bedroom units and 40 two-bedroom apartments with air conditioning, ceiling fans, stainless steel appliances, double-pane windows, walk-in closets, full-size washers/dryers and tankless water heaters. Community amenities include a clubhouse with a fitness center, play area and onsite property manager. AREF has provided funds to gate the entire community.
Matt Benwitt of Lee & Associates LA North/Ventura represented the buyer, while Marcus & Millichap represented the seller in the transaction. Nick Benjamin and Tom Lewis of CalAHA participated in the lease-to-own structure of its Stanislaus Regional Housing Authority member. Jim Kruse of Stanislaus Regional Housing Authority and its employees undertook the due diligence for the formation of the lease.