Eagle Partners Buys Affordable Apartments in Orange County

Eagle Real Estate Partners and Vistria Group joined forces to acquire a workforce housing community in Orange County.

The multifamily investment firms purchased the 402-unit Crystal View Apartments at 12091 Bayport Street in Garden Grove for $132.5 million, or approximately $329,600 per unit, Commercial Observer reported. Newmark’s Geoff Boler and Jonathan Merhaut represented Eagle Real Estate in the sale.

The transaction preserves affordability at the workforce housing community by extending existing affordability for 20 percent of the units which are designated for households earning up to 50 percent of area median income. The purchase also establishes new long-term affordability restrictions for an additional 30 percent of units for those earning 80 percent of area median income, Yield Pro reported. Eagle and Vistria also plan to roll out a capital improvement program to upgrade the property and resident experience.

The deal brings Crystal View Apartments back under Eagle’s wing. In 2005, an affiliate of Eagle Real Estate Partners sold the nearly 60-year-old property to BlackRock for $60.2 million, or roughly $149,750 per unit, CoStar reported at the time. By buying back the property, Eagle Real Estate grows its presence in Orange County, which Managing Partner Taylor Friend called “one of the most supply-constrained housing markets in the country.”

Crystal View Apartments was built in 1968 and underwent renovations in 2012. Amenities on site include a resort-style pool, a fitness center and a sports complex.

Eagle’s purchase marks the firm’s third affordability preservation play over the past year, all in Southern California. Last November, it spent $107 million on the 350-unit Hills at Hacienda Heights community in Los Angeles County’s Hacienda Heights. In March, it acquired the 551-unit Hendrix and Hadley Apartments in San Diego County’s Escondido for $162.5 million. Both of those purchases were made through Eagle’s new partnership with TriPost Capital Partners — a joint venture that aims to acquire up to $1.5 billion in multifamily assets.

— Chris Malone Méndez