USA Properties expands into Oregon with The Canopy Apartments in Portland

Partnership with Northwest Housing Alternatives and Oregon Housing and Community Services starts construction on apartment community

USA Properties Fund, one of the fastest-growing and leading affordable developer-owner-managers in the West, Northwest Housing Alternatives and Oregon Housing and Community Services are partnering on The Canopy Apartments at Powell, a much-needed affordable apartment community close to public transportation, freeways, schools and several shopping centers in east Portland.

Construction on The Canopy Apartments at Powell – located at 12439 SE Powell Blvd., about 12 miles east of downtown Portland – has started and should be completed in late 2023. The 169-apartment community will have numerous amenities, including a bike room, a courtyard with a tot lot, a dog wash and a donation pantry, allowing residents to share food resources.

The $63 million development is the first in Oregon for USA Properties Fund, which has more than 90 affordable and market-rate apartment communities in California and Nevada.

Geoffrey Brown portrait

Aggressive efforts to address affordable housing, through legislation and the passing of a bond measure by voters in recent years, have “made it more realistic to develop affordable housing” in Oregon, said USA Properties President Geoff Brown,

“We’ve been looking at expanding to Portland for a while, and The Canopy Apartments is a good fit and a great project to enter the market,” said Brown, who knows the region well, earning a bachelor’s degree in Economics from Willamette University in Salem. “We appreciate the relationships that we have developed and enjoy working with Northwest Housing and OHCS. They are great people who understand affordable housing.”

‘SAFE, STABLE AND AFFORDABLE HOUSING FOR OREGON FAMILIES’

The public-private partnership – including $15.2 million from OHCS’ Local Innovation and Fast Track (LIFT) Housing Program – was critical in taking the apartment community from the drawing board to the 3.8-acre parcel, said Darryl Briley, a Portland-area development consultant working on the project.

“Increasing access to safe, stable and affordable housing for Oregon families is a continued commitment of OHCS,” said OHCS Executive Director Andrea Bell. “Housing is a critical social determinant of health because it is a platform for health, well-being and community. Financing multifamily affordable housing like The Canopy Apartments at Powell is a representation of our ambitious long-term strategy to respond to the housing crisis impacting the most vulnerable communities in Oregon. It is about centering humanity.”

OHCS has funded almost 19,000 affordable rental homes during the first three years of its Housing Plan, and is on pace to easily exceed the goal of 25,000 over five years.

The Portland Housing Bureau has also played a major role in The Canopy Apartments at Powell, waiving millions of dollars in development fees. The city has issued a State of Emergency on Housing and Homelessness, which greatly expedites the permitting process.

SMALLER RENTS, LARGER APARTMENTS

The Canopy Apartments at Powell will provide much-needed affordable housing for residents in the Portland region, where almost half (46%) of households that rent are considered “cost-burdened,” spending at least 30% of their income on housing, according to The Federal Reserve Bank of St. Louis.

The Canopy Apartments at Powell is for residents earning less than 60% of the area’s median income – about $58,000 per year for a family of four. Rents will range from less than $1,100 per month for a one-bedroom apartment to just more than $1,500 for a three-bedroom unit.

Those rents are significantly less than nearby market-rate apartments in Portland, according to industry tracker Zumper.

Almost as important as the affordable rents are the size of the units, said Destin Ferdun, Director of Real Estate Development for Northwest Housing Alternatives. About half of the apartments will be three-bedroom units, helping meet an often-overlooked and underserved population in the Portland region – families.

The Canopy Apartments at Powell has a “very cost-effective, efficient use of the space,” Ferdun said.

LONG LIST OF AMENITIES, LESS IMPACT ON THE ENVIRONMENT

The modern contemporary-designed apartment community will have a three- and a four-story building. Amenities will include elevators, laundry facilities on each floor, and ample on-site parking with an electric vehicle charging station.

Apartments will include electric heating; laminate flooring; energy-efficient appliances and lighting; and low-flow faucets, showers and toilets. Apartments can also accommodate tenant-owned air conditioning units, if necessary.

USA Properties, which embraced green-building practices more than a decade ago, has registered with Earth Advantage and expects to receive a Platinum-level certification for the project. Numerous earth-friendly upgrades – including high-performance windows, the installation of a solar-panel system and a commitment to building with local materials – will help boost the performance of The Canopy Apartments at Powell by at least 26% compared to baseline permitted construction, said Eric Foley, Manager of the Multifamily Program for Earth Advantage.  

The Canopy Apartments is “very thoughtful in its design,” Briley said.

JP Morgan Chase and WNC are financial partners on the project. WALSH Construction Co. is the general contractor.

The Canopy Apartments at Powell could be the first of several projects in the Portland region for Roseville, Calif.-based USA Properties.

“Oregon and the Portland community are committed to addressing the overwhelming need for more affordable housing,” Brown said. “And we’re looking forward to finding projects that make sense for us and our partners, and being part of the solution that helps ease the critical shortage of affordable housing in the region.”

USA Properties starts construction on College Creek that will provide housing for a range of incomes

164-apartment community is ‘an example of how partnerships … are an effective way to creating much-needed housing’

USA Properties Fund has started construction on College Creek, an affordable apartment community in Santa Rosa that will provide much-needed housing to residents that earn a range of income levels under a new state program.

College Creek – located at 2150 W. College Avenue, just west of Highway 101 and north of Highway 12 – could be home to early-in-their career school teachers, hardworking couples with children saving for a house, or retirees living on a fixed income.

College Creek “caters to everyone – families, the working class, seniors,” said Jatin Malhotra, Vice President of Acquisitions for USA Properties. “It’s exciting to see this come together.”

The 164-apartment community will be close to downtown Santa Rosa, large shopping centers, health care providers and several schools, including Piner High School and Santa Rosa Junior College.

College Creek is also near the Santa Rosa Creek Trail and Finley Community Park, which includes sports courts, walking trails and a swimming pool. The apartment community is also next to the Westside Transit Center, served by multiple bus lines that provide connections for the Downtown SMART station.

USA Properties acquired the 7.4-acre site from Sonoma County Community Development Commission, one of the partners on the project along with Bank of America and California Housing Finance Agency (CalHFA). The public-private partnership was critical for the $69 million development to move forward.

Members of the partnership are committed to the development that ensures more housing for low-income residents in Sonoma County, where half of all households are considered “cost-burdened,” spending at least 30% of their income on housing, according to the California Housing Partnership.

ONE COMMUNITY, A RANGE OF INCOMES

College Creek apartments will be substantially less than nearby market-rate units in Santa Rosa – and available to residents that earn a wider range of income levels, thanks to CalHFA’s Mixed-Income Program.

“I am thrilled to see CalHFA’s Mixed-Income Program help finance affordable housing for residents of Sonoma County,” said Tiena Johnson Hall, Executive Director of CalHFA. “This development is a great example of how partnerships between local and state government, and private affordable housing developers like USA Properties, are an effective way to creating much-needed housing for people at a mix of lower incomes.”

Tiena Johnson Hall

College Creek – the sixth affordable apartment community in Santa Rosa for USA Properties – should be completed in fall 2023.

“We’ve been working with the City of Santa Rosa and Sonoma County for many years, and we share a commitment to provide quality housing that meets the needs of the community,” said Geoff Brown, President of USA Properties.

The company helped the community recover from the devastating Tubbs Fire in October 2017, providing supplies and support to residents for what was then the largest-ever wildfire in California history.

“As Santa Rosa and the North Bay continue to rebuild after so much housing lost to wildfire, the College Creek project from USA Properties adds new, high-quality affordable housing for residents in the region’s workforce,” said Jason Foster, Bank of America North Bay President. “Bank of America was proud to help finance this important housing project.”

College Creek will be available for low-income residents that meet an expanded range of income limits established by the Tax Credit Allocation Committee. With the program, renters earning 30% to 70% of the area’s median income – about $24,450 to $57,050 for a one-person household leasing a one-bedroom apartment – could qualify for College Creek.

“Sonoma County prospers best when it is a place with housing opportunities across the income spectrum,” said Dave Kiff, Interim Executive Director of the Sonoma County Community Development Commission. “The affordability of the College Creek project’s housing units is part of making Sonoma County that place. We are so thankful that USA Properties has stepped up with county government, the City of Santa Rosa and CalHFA to build it.”

College Creek residents will benefit from substantially lower rents compared to market-rate apartments in Santa Rosa. One-bedroom apartment rents will range from $615 to $1,488 per month, depending on the income of residents. Two-bedroom apartments will lease for $730 to $1,777, while three-bedroom units will rent for $836 to $2,046.

The average one-bedroom apartment rents for about $2,100 in Santa Rosa, according to RENTCafe.

AFFORDABLE – WITH A LONG LIST OF AMENITIES

But affordable does not mean basic or boring for residents at College Creek. The apartment community – a four-story building and two three-story buildings – will offer a long list of amenities, including a community room complete with computer workstations; a fitness room; a swimming pool; a tot lot; and on-site laundry facilities.

Apartments will feature energy-efficient appliances and light fixtures, ceiling fans and low-flow faucets, showers and toilets.

“It will be a very nice apartment community,” Malhotra said. “It’s designed to meet the community’s needs and the neighbors around it.”

USA Properties worked closely with the community, including the City of Santa Rosa and Sonoma County, and neighbors on the project that has been in the planning stages for several years.

“It took a little bit of everything to bring this project to life,” Malhotra said. “It’s a true public-private partnership and a template for how public agencies and developers can work together to create more affordable housing.”

Jatin Malhotra portrait
Jatin Malhotra

USA Properties President Geoff Brown elected Chairman of NH&RA

The following story appeared in the February 2022 issue of National Housing & Rehabilitation Association’s magazine, Tax Credit Advisor.

(Editor’s note: The following interview was conducted in January 2022, when Covid cases were at a much higher level because of the omicron variant.)

By Darryl Hicks

When the National Housing & Rehabilitation Association (NH&RA) convenes in Palm Beach, FL later this month for its Annual Meeting, Geoff Brown will officially become the next chairman of the Board of Directors.

Under Brown’s leadership, USA Properties Fund has become one of the largest developer-manager-owners of affordable housing in the West and a leader in the multifamily industry.

He is widely regarded as an innovator who utilizes creative financing solutions to overcome funding gaps and complete projects, and is a firm believer in the green building movement and incorporating solar power in almost every property the company develops.

Brown is also an advocate who believes there is a dangerous shortage of affordable housing in California and that public officials should allocate greater resources to increase supply. And he’s always exploring new ways to improve access to social services at his properties.

Tax Credit Advisor sat down with Brown to talk about his priorities as NH&RA’s next chairman, as well as important issues and trends that he’s seeing in the marketplace.

Tax Credit Advisor: How large is your affordable housing portfolio? How many states are you currently active in? Are there any new housing markets that you’re looking at in 2022?

Geoff Brown: We have 10,900 units in our affordable portfolio. We’re primarily in California and we have four communities in Nevada. This month, we will buy another 132 units in Nevada with the intent of doing a tax-exempt bond rehab on those units later this year. The newest market that we’re getting into—thanks to Thom (NH&RA President Thom Amdur)—is Oregon. NH&RA got wind that Oregon was getting more money [for affordable housing] and held a symposium there in September 2018. We have formed a partnership with Northwest Housing Alternatives, a well-respected nonprofit, and we’re going to close our first affordable housing project there this month. It’s called The Canopy, a 165-unit property in Portland, that we’re very excited about. A second project that we’re working on in the Portland area is in pre-development. We’ll continue looking for opportunities in neighboring states, but California will always be our primary market.

TCA: Congratulations on becoming the next NH&RA chairman. What will be your top priorities for NH&RA and its members for the next 12 months?

GB: I have enormous respect for the organization. We joined NH&RA in 1994, so almost, not quite, 30 years of the 41 years that USA Properties Fund has existed. I would like to explore opportunities to expand NH&RA’s footprint in affordable housing at the national level. Affordable housing is a national concern, not just in California and New York. The value that NH&RA has added to that discussion, the innovative ideas that it has advocated for and its ability to stay ahead of the curve, have been hugely beneficial. Part of it is leveraging members’ experience of doing new and creative things. There’s a lot of great brain power in the organization. I’d like to expand the footprint of how we utilize that brain power, while also bringing in new members from parts of the country where NH&RA hasn’t been quite as engaged.

“Affordable housing is a national concern, not just in California and New York. The value that NH&RA has added to that discussion, the innovative ideas that it has advocated for and its ability to stay ahead of the curve, have been hugely beneficial.”

Geoff Brown

Golden anniversary for NH&RA

TCA: 2022 is also a special year for NH&RA, because the association will be celebrating its 50th anniversary. Have you thought about how you’d like to commemorate the association and its achievements?

GB: Thom and Peter (NH&RA CEO Peter Bell) have spent the most time thinking about that, as they should. The annual meeting in Palm Beach will be a celebration that includes people who have been involved in the organization for a long time. I’m going to be there to support whatever they want to do. It is a very important milestone to acknowledge. Our company last year had its 40th anniversary. Milestones for organizations, whether it’s a trade organization or a company, are very important to acknowledge.

TCA: How have you personally benefited from your involvement in NH&RA?

GB: It has been great to meet people on a national basis who I otherwise wouldn’t have met and gotten to know. There are so many smart people who are active in NH&RA. Networking and learning from them has been hugely beneficial. I have also profited from NH&RA’s conferences. NH&RA has always done a good job of staying ahead of the curve and being in tune to innovative ways that people have figured out to finance and build more affordable housing, or just dealing with production issues that are challenging the industry. Being involved in NH&RA has been very good for our company and me on an educational level, as well as a networking level.

TCA: Let’s switch to the marketplace. Just when things were normalizing, we have a new variant that’s causing problems for some folks. Have you experienced any pipeline disruptions? Have you instituted any new precautionary measures at your construction sites, or the properties you manage?

GB: The whole economy with the supply chain crisis, whether that’s due to COVID, tariffs, whatever, has led to disruptions in the delivery of certain materials to our construction sites that we never dreamed would happen. Lately, getting windows delivered has been a challenge. As an example, one of the things we had to deal with early on in California with COVID was all the county regulations. Some are still in place or new regulations for COVID, like in Los Angeles, are now in place. We’re building two projects right now in Los Angeles County. Our teams must wear surgical or respiratory masks, so that’s a new requirement. Our teams have had to be sensitive not only to federal and state requirements but also county requirements. In California, we operate in a lot of different counties, so that’s been something we’ve had to stay abreast of.

Supply-chain issues a serious challenge

TCA: Are you hearing from your suppliers whether these disruptions will go away anytime soon?

GB: It varies depending on the materials and where they’re coming from and who the supplier is. When you have 80,000 open truck driver positions in this country that means the problem isn’t stopping when the ships get to the port. Down in Orange County (CA), you see all these ships on the sea that aren’t getting to the port with materials, but even once they get to the port the supply chain problem doesn’t go away. I think we’re going to have to deal with this for another year. I’m talking the whole economy, not just affordable housing. For us, I think it will vary depending on the materials and where they’re coming from. Hopefully, the omicron situation we’re dealing with now will be better by springtime. We just came out of the holidays where people gathered. We’re way ahead of where we were a year ago in terms of being vaccinated and so I’m optimistic that conditions will get better. I mention this because when we ultimately reach a new normal, I think there will be some correlation of how that ultimately affects the supply chain issue.

TCA: You are a leading housing advocate in California. What are your current policy priorities and what are you doing to ensure affordable housing gets the resources it deserves?

GB: Within our company, as well as a lot of others, the number one priority is always affordable housing production and that means trying to get as many units produced as possible within California. As I always say, when we have these debates, within our industry we don’t always agree on policies, but we all agree there’s a shortage of affordable housing. You would think that addressing the challenge would be simple, but it is everything but simple, for two reasons. Number one, the state says it wants more production but ends up creating policies that are counter to achieving that goal, whether it’s with labor or building codes or the California Environmental Quality Act (CEQA). Governor Newsom has done a very good job of putting pressure on cities and counties. We have seen a definite change locally for more production. But the other thing that’s also going on is that the state has been putting more resources into homeless and supportive housing. That should and needs to be a very high priority, but it comes with a cost. We’re continually advocating for the state to leverage its precious resources as efficiently as possible, so we can maximize production.

“… within our industry we don’t always agree on policies, but we all agree there’s a shortage of affordable housing.”

Geoff Brown on the importance of working together on building more affordable housing

TCA: Have your residents by and large recovered financially from the economic challenges created by COVID, or are there lingering issues that your property managers are dealing with? If there are lingering issues, what steps are you taking to keep eviction rates down?

GB: I can count on one hand the number of evictions we’re working on right now. They’re very minimal. We don’t want to evict tenants. That’s always a last resort. What’s interesting about this environment is that there are plenty of jobs out there. At the end of last year, there were 11 million job vacancies. A lot of those vacancies were in service sectors that our residents would qualify for. There are bad actors out there who weren’t financially hit by COVID but took advantage of the foreclosure moratoriums and don’t want to pay rent. But for the most part, people can get work and I think that’s why our evictions are so low.

An emphasis on affordability — and philanthropy

TCA: I’d like to learn more about the JB Brown Fund. Why was it created? How is it funded? How has it impacted the lives of your residents?

GB: The JB Brown Fund is 11 years old. It has been extremely impactful. We’ve given out 330 academic scholarships and 745 youth sports grants. My kids never had to worry about money if they wanted to participate in youth sports. Kids learn a lot of life lessons through sports and so it was important to me that our residents weren’t prevented from those same opportunities because of money. In addition, we’ve given out 600 client assistance awards either to help people with temporary financial hardships or special needs. For example, to help provide a hearing aid or a walker for an elderly person. We have touched 1,000 families and raised over $1.6 million. It’s a big part of our culture. We also created the Robert Clark Trade School Scholarship, named for a USA Properties employee who tragically passed away in 2020, to encourage our residents who want to become an electrician or a plumber to go to trade school. We tell our residents that they can make a really good living from a specialized trade. We want to provide the resources for them to do that.

LifeSTEPS Executive Director Beth Southorn (left) and Geoff Brown (far right) with JB Brown Fund scholarship recipients Eseosa (second from left) and Aiseosa Omorogieva in 2019. The twin brother and sister attended the University of California, Davis, with assistance from the JB Brown Fund.

TCA: The last time we talked in 2015, you were one of a handful of developers who were examining cutting-edge opportunities to provide home health care services for your aging residents. How has that worked out?

GB: It’s still a work in process. The RN Coaching PILOT Program began in the spring of 2016 and was one of the first of its kind in California that helped seniors who had health issues and couldn’t easily get to a doctor to age in place, thanks to an on-site registered nurse who visited senior communities every week. It was created in partnership with LifeSTEPS, which provides social services at many of our communities. The pilot also provided hands-on health care training for nursing students from the Betty Moore School of Nursing at the University of California, Davis. It was very successful for two years. COVID unfortunately created headwinds that prevented us from continuing that service. We are currently working with LifeSTEPS and LeadingAge, a big senior organization here in California, to resuscitate that program, either to model in another state, or to do something similar to what we had been doing. Our goal is to create a cost-efficient home health care program, but the key is getting a permanent funding source. Part of my thing with getting support from the state isn’t to put my hand out and ask for money. Rather, it’s being able to say to the state, ‘We can save you money, because we’ve come up with an alternative solution to the current system that is costing you more money.’ The objective has always been to help our residents but to do it in a way where we’re saving the system money.

 

USA Properties completes ‘beautiful’ Sierra Sunrise rehabilitation

$5.7 million investment adds long list of amenities and modern features while helping residents to age in place at affordable senior apartment community

USA Properties Fund has completed an extensive rehabilitation project of Sierra Sunrise in Carmichael, one of its largest-ever efforts for an existing property.

From new appliances, cabinets, flooring and lighting in the 119 apartments to converting a little-used indoor spa into a much-in-demand fitness center, the rehabilitation project has given a modern look to a community that opened in 1976.

“Walking into the building, I was very excited,” resident Dawn Jenkins said of her first time seeing the completed project. “It’s beautiful. It’s so well decorated, so well done.”

Sierra Sunrise – an affordable community for low- to very-low-income residents at least 62 years old just east of Sacramento – underwent a complete floor-to-roof rehabilitation. USA Properties, one of the largest developer-owner-managers of affordable apartment communities in the West, bought Sierra Sunrise in 2004.

“It doesn’t even look like the same space,” said Yvonne McDonald, Community Manager of the affordable senior apartment community. “It surpassed my expectations.”

The 18-month project included the easy-to-see – such as new furniture and paint – but also many behind-the-scenes improvements, like the installation of the company’s second-largest photovoltaic system that will cut energy costs and help the environment.

“We’re always looking at how to improve our apartment communities,” said USA Properties President Geoff Brown. “Sierra Sunrise is an example of what is possible, and how we can turn a decades-old building into a more comfortable, functional and modern community.”

‘They’re living in a brand-new home’

Residents are back home enjoying their new apartments and the community.

“It was nice to see the response from residents and to give them a home this nice,” said Construction Project Manager John Kelly, who oversaw the $5.7 million project. “They are very appreciative. They’re living in a brand-new home.”

Some of the changes include an extensive facelift to the community/dining room; a craft room with a kitchen where residents can enjoy hobbies and prepare their own meals; a comfortable media room for movie night; and a cozy library with floor-to-ceiling shelves and two computer stations.

Jenkins appreciates her just-like-new apartment, including the additional cabinet space and the new, black refrigerator. She also applauds the doubling of washers and dryers in the laundry rooms, and likes the new seating area near the main entrance, perfect for a late-night get-together with friends.

“There are so many areas that we put in for residents to congregate and share space,” said Megan Underwood, Compliance Manager for USA Multifamily Management. “Everything was to create a feeling of community.”

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Catering kitchen and on-site registered nursing program helps residents to age in place

Part of building “community” includes helping residents to age in place with their friends and remain at Sierra Sunrise as long as possible, a long-standing mission of USA Properties, said Tami Pedroia, a Senior Regional Manager for USA Properties.

For example, a catering kitchen with a commercial refrigerator and freezer and retherm tower will help Meals on Wheels provide meals every weekday to residents after the Covid pandemic. A free, on-site registered nursing program that meets with residents twice a week has a new office. And a sidewalk now goes around the entire property, allowing residents – some with limited mobility – to get exercise and enjoy the outdoors.

The sidewalk passes through an outdoor area that includes a new dog run, gazebos, a barbecue area with seating, and raised planters where residents can put their gardening skills to work.

“I love the sidewalk that goes clear around the building,” said Jenkins, who walks her dog along the path daily and oversees the raised planters in the garden for residents. “It’s freedom.”

From the remodeled community room to the patio with seating areas, “everything allows residents to socialize,” said McDonald, who has been part of the community management team since 2016.

Careful planning to relocate residents

Construction started in spring 2020, and the company was committed to cause as little disruption as possible to residents during the long-term rehabilitation project.

“We had to have a very strategic approach,” Pedroia added. “But, overall, it went very smoothly.”

Jenkins, who has lived at Sierra Sunrise since 2015, agrees.

“I knew with any remodel, there would be some inconvenience, but they kept it at a minimum,” Jenkins said. “Management went above and beyond.”

And the end result was well received by residents living in the 65 studios and 54 one-bedroom homes. They appreciate the new flooring, fixtures, LED lighting and Quartz countertops.

“Once all the dust settled, some were in tears,” said McDonald, adding that one resident didn’t want to leave her apartment during construction but was pleasantly surprised when she returned to her new home. “She cried about leaving … and she cried when she came back.”

Construction starts on Sage at Folsom, an affordable senior apartment community

111-apartment development is blocks from large shopping centers, Highway 50

USA Properties Fund has started construction on Sage at Folsom, bringing much-needed affordable senior housing at a “market-rate location” to one of the fastest-growing and highest-rated livable cities in California.

Sage at Folsom, located at 75 Scholar Way, will offer affordable housing for residents 55 years and older at a range of income levels with a long list of amenities – including a community garden, dog park and a refrigerated storage area for food deliveries.

“We’ve enjoyed much success in Folsom, and are looking forward to providing more affordable housing for seniors looking to live in a very vibrant neighborhood and thriving city,” said Geoff Brown, President of USA Properties Fund.

‘Main and Main of Folsom’

The 111-apartment community is a few blocks from Folsom Lake College, health care providers, grocery stores and several large shopping centers, including Broadstone Plaza and the Palladio Shopping Center. Sage at Folsom is also close to Highway 50 and less than a block from a new bus stop.

“It’s like the Main and Main of Folsom,” said Gabe Gardner of the USA Properties’ Acquisitions team. “It’s a market-rate location for an affordable community.”

Construction on the $32 million development started in November, and should be completed in first-quarter 2023. Bank of America and the City of Folsom are investment partners on the project.

“Bank of America Community Development Banking is pleased to help finance this much-needed affordable housing for seniors in Sacramento County,” said CP Parmar, President of Bank of America Sacramento. “Developer USA Properties has done a tremendous job with Sage at Folsom, representing a great example of the impact that public-private partnerships can make in creating more quality affordable housing for those most in need.”

Homes for seniors who earn about $19,150 to $51,000

Fast-rising rents in recent years have greatly increased the need for more affordable housing in Folsom, especially for low-income seniors.

Age-eligible residents will need to earn 30% to 80% of the median income for Sacramento County – about $19,150 to $51,000 per year – in order to qualify for Sage at Folsom. Rents will range from $450 to $1,300. The average rent for a one-bedroom apartment in Folsom is about $2,330, according to RENTCafe.

Sage at Folsom is affordable, not basic.

The one-bedroom homes will feature energy-efficient appliances and light fixtures, ceiling fans and low-flow faucets, showers and toilets. Each of the three floors will include laundry facilities for residents.

Sage of Folsom residents will also enjoy numerous community amenities, including a clubhouse with a kitchenette and great room; a health and wellness center; a patio with dining and seating areas; a Bocce court; community garden and a dog park. Refrigerated food storage, from grocery stores or nearby restaurants, are available to residents.

Clean energy — and EV charging stations

The apartment community will have ample parking, including EV charging stations. And Sage at Folsom’s electricity will come from Sacramento Municipal Utility District’s (SMUD) SolarShare Program, ensuring clean solar is the power source.

Sage at Folsom’s architecture will blend in well with the surrounding neighborhood.

“It’s going to look amazing,” Gardner said. “It will be stunning.”

Sage at Folsom will be the fourth apartment community for USA Properties in the Folsom area, including the award-winning communities of Forestwood at Folsom and Talavera, a market-rate development less than a mile away. The 40-year-old company is one of the largest affordable apartment community developers in the West.

“Every apartment community we build, affordable or market-rate, opens the door to more housing and opportunities,” Brown said.

Folsom, about 25 miles east of the state Capitol in Sacramento, has received numerous national awards for best places to live, family living, finding a job and safety in recent years, including honors from Money magazine and WalletHub.

“We’re looking forward to Sage at Folsom residents enjoying the community and all it has to offer, from the historic district to Folsom Lake,” Brown said.

JB Brown Fund celebrates 10-year anniversary, holds successful auction

Almost 1,000 low-income residents living in USA Properties Fund apartment communities have been helped by the one-of-a-kind program

The JB Brown Fund celebrated its 10-year anniversary Oct. 7 at USA Properties Fund’s headquarters in Roseville, honoring those who have made the organization such a success and sharing the stories of a few recipients helped by the social-services program.

The two-hour event featured speakers, a hosted food truck, and a silent in-person and online auction with proceeds benefiting the organization.

The auction, which raised $1,200, included a custom cake, original artwork to gift baskets with various themes, from Family Fun Night to Golf to Soccer, complete with Sacramento Republic FC items and tickets.

What is the JB Brown Fund?

Earning a college degree with the help of a much-needed scholarship.

Getting through a challenging emotional and financial period, such as a job loss or the sudden death of a loved one – or the far-reaching and hard-to-imagine impact of the Covid pandemic.

Being active and learning some of life’s most-valuable lessons, from camaraderie to sportsmanship, by participating in youth sports.

All have been made possible, and so much more, thanks to the JB Brown Fund, a partnership between USA Properties Fund and LifeSTEPS, a nonprofit that provides social services at many of USA Properties’ affordable family and senior apartment communities.

What started as an idea during a drive to the airport, has helped almost 1,000 low-income residents reach new heights – and recover from the most turbulent of times – since 2011.

The JB Brown Fund helps low-income residents – from hardworking single parents to seniors living on a fixed-income – achieve their dreams, like attending and completing college, to dealing with an unexpected financial emergency, including paying for a new pair of eyeglasses or hearing aids to vehicle repairs.

It helped out a lot. It paid for more than half of my tuition. I really appreciate the help.

— Laura Gutierrez, who earned a bachelor’s degree in Business Administration with an emphasis on human resources from San Jose State University in 2020. The $11,000 in college scholarships from the JB Brown Fund allowed her to focus on her classes and being a new mother – and worry less about paying for school. She graduated Summa Cum Laude with a 3.9 grade-point average.

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Almost $1.35 million awarded since 2011

The JB Brown Fund has awarded almost $1.35 million to residents since starting in 2011, including $900,000 for college scholarships to residents. Every dollar donated goes directly to helping residents.

“The JB Brown Fund truly changes lives, establishes a better foundation for residents and their families, and helps build stronger communities,” said USA Properties President Geoff Brown, whose father J.B. Brown founded the company in 1981. “The JB Brown Fund is an investment in our residents and their unlimited potential.”

The JB Brown Fund helps “move the needle and breaks the cycle of poverty,” said LifeSTEPS Executive Director Beth Southorn, who co-founded the JB Brown Fund with Geoff Brown. The fund, its donors and recipients are “carriers of transformation and positivity.”

Learn more about the JB Brown Fund and how you can help and join the life-changing effort at jbbrownfund.org.

Talavera honored as Sacramento Business Journal’s Best Real Estate Project of the Year

The following is from the Sacramento Business Journal’s Best Real Estate Projects of the Year section and appears as published Sept. 10.   

By Danny King

When it came to getting the community support necessary for the city of Folsom to sign off on the Talavera Apartments site, the process was an uphill battle. Literally.

Having started work on the project in 2015, Roseville-based developer USA Properties Fund had to contend with residents on the ridge to the east of the 9.7-acre site, including concerns over the project’s height and road access.

Additionally, while the city was pushing for a higher number of units, the neighbors wanted fewer apartments.

“The people on the hill wanted to be involved and have an opinion,” said Kobi Moses, principal at Los Angeles-based GMPA Architects, the project’s architect. “So we had to take that into consideration and become a good neighbor.”

After many meetings that included — among other things — the presentation of three-dimensional renderings, the project underwent three substantial design phases before being ultimately approved with 293 apartment units and a rejiggered entrance from a neighborhood street to the busier Broadstone Parkway.

“Initially, the city wanted more units for the site than what we were doing, and neighbors never want more units, so we had to back off,” said USA Properties Fund CEO Geoff Brown, whose company had previously developed two affordable housing projects in the city. “It wasn’t an easy process.”

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The project, which broke ground in 2017, had a built-in advantage of being located across the street from the Palladio at Broadstone, the 700,000-square-foot “lifestyle” center that was completed in 2011.

The $84.5 million apartment complex, which is spread across four buildings, was also designed to cater to contemporary residential needs. In addition to typical amenities such as a pool and a fitness center, Talavera Apartments also features smart-home appliances, refrigerated lockers, electronic door locks, a do-it-yourself bike-repair center and a “pet park and wash” area. The project’s layout was designed to create a courtyard-type atmosphere between the buildings.

And despite being completed last August, or about five months after Covid-related restrictions were put into place, Talavera — which is managed by Greystar — benefited from the combination of a virtual-leasing program and what Brown said was a steady increase in interest from prospective renters looking to relocate from the San Francisco Bay Area.

“We did it a little bit on the fly, but we had a lot of collateral with the photos,” Brown said of the virtual leasing program. “It was just a matter of converting them.”

Additionally, 24 of the one-bedroom units and 132 of the two-bedroom apartments were designed to include dens, and while that amenity wasn’t added with stay-at-home mandates in mind, it proved to be invaluable for prospective renters who’d been granted the freedom to work from home.

“Many times, we’ve purposely made the bedrooms and other spaces a little smaller to gain a den or work-alcove within the units,” said Moses, whose firm’s work has spanned across the multi-unit residential, mixed-use, commercial, hospitality and master-planning sectors during its 30-year history. “We didn’t know we’d have a pandemic, but we as a company have been advocating giving people space to work from home probably for the last 20 years since laptop computers became so popular.”

As a result, Talavera was 90% leased by March 2021. And while the average rents in Folsom range from about $1,500 a month to about $2,300 a month for studios, one-bedrooms and two-bedrooms, according to Apartments.com, Talavera’s rents are about $200 a month higher than those figures.

“On one side of it, you’ve got retail and restaurants. You’ve got freeway access, you’ve got parks nearby, you’ve got Folsom Lake College, you’ve got a good school district, and you’ve got medical nearby,” said Brown. “It’s just a really great location.”

Fast Facts

Talavera Apartments

Details: 293-unit apartment complex spread across four buildings

Completed: August 2020

Cost: $84.5 million

Developer: USA Properties Fund Inc.

Contractor: USA Construction Management Inc.

Architect: GMPA Architects Inc.

USA celebrates Adega opening, details plans for a second phase

Luxury apartment community in Rohnert Park offers a long list of amenities, including a clubroom, saltwater pool, dog park and
EV-charging stations

USA Properties Fund celebrated the grand opening July 28 of Adega in Rohnert Park, the first of two market-rate apartment communities helping meet the need for more housing in Sonoma County.

The luxury apartment community – located at 541 Carlson Avenue, a few blocks west of Highway 101 and just north of the Rohnert Park Expressway – is part of the Five Creek subdivision, which includes housing, retail and a community park built by USA Properties.

The Adega apartment community is close to numerous stores – including Costco, Target and Walmart – dozens of local and national chain restaurants, and several health-care providers.

The 135-apartment Adega is the first of two apartment communities by USA Properties in the former Rohnert Park Stadium neighborhood. Construction on the adjacent Adega II could begin in April and bring another 74 apartments – including seven affordable units – to the much-in-demand Rohnert Park. The second phase could be completed in late 2023.

USA Properties already has eight apartment communities – including seven affordable communities – in Sonoma County, from Petaluma to Santa Rosa. Another apartment community is in nearby Napa.

“We’ve enjoyed much success in the region, providing quality homes for residents and developing strong relationships with the cities,” said Geoff Brown, President of USA Properties. “We’re proud to be part of an effort to help transform the Stadium neighborhood, including putting in a community park available to everyone.”

USA Properties’ Gabe Gardner talks about the new apartment community during an event July 28.

Room(s) to roam: Three-bedroom apartments available

Rohnert Park, like many communities in California close to major cities, has attracted the attention of residents seeking lower-priced housing and more space during the past 18 months. Adega, which offers three-bedroom apartments with as much as 1,418 square feet, started leasing just as the Covid pandemic started.

“We were pleasantly surprised with how well Adega leased up, especially given the challenges and restrictions,” said Milo Terzich, Vice President of Development for USA Properties. “Both apartment communities will be fulfilling the city’s master plan for the area.”

And helping fulfill a need for more housing in Rohnert Park.

“We understand there is a housing shortage, and we want to be part of the solution,” said Rohnert Park Mayor Gerard Giudice. The city recently approved an ordinance that requires affordable housing for new apartment communities with 50 or more units. “We are definitely doing our part.”

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Outdoor kitchen, barbecues and firepits make year-round get-togethers easy

When the second phase is completed, the Adega apartment community will have a combined 209 units, offering one- to three-bedroom homes. Apartment features include wood plank-style flooring, Energy Star stainless-steel appliances, quartz countertops, automatic roll-down window shades, and full-size washers and dryers.

The combined apartment communities include a clubroom with a catering kitchen and fireplace; a saltwater pool and spa; fitness room; an outdoor lounge area with fireplaces and firepits; an outdoor kitchen area with barbecues; a dog park and pet-wash area; and electric vehicle charging stations.

The Adega I apartment community, with a total cost of about $51.2 million, is the latest market-rate project for USA Properties. The Roseville-based company has been expanding into market-rate developments the past several years.

USA Properties, which is celebrating its 40th anniversary, is one of the largest affordable apartment community developer-owner-managers in the West.

“We are committed to creating outstanding communities, whether they are affordable or market-rate housing,” USA Properties’ Brown said. “Each new apartment is critical to meeting the need for more housing in the state, and opens the door to a new home for residents.”

USA Properties sells Harvest at Fiddyment Ranch in Roseville

Opened less than a year ago, Harvest at Fiddyment Ranch in Roseville has fulfilled one prediction made when it went up for sale: a triple-digit sales price.

The 300-unit apartment property developed by USA Properties Fund Inc. sold for $111.34 million earlier this month to Bridge Partners, out of Walnut Creek.

A message left with Bridge Partners wasn’t returned, while USA Properties Fund President Geoff Brown said it was a property to be proud of.

“We developed a high-end, quality apartment community with a long list of amenities in an excellent location in one of the fastest-growing cities in the state, and that helped drive the incredible interest,” Brown said in an email. “We’re extremely proud of what we accomplished with Harvest at Fiddyment Ranch, and the sale will help fund our future apartment communities.”

On a per-unit basis, Harvest at Fiddyment Ranch sold for about $371,000, likely among the highest on that basis this year so far. Occupancy at the time of sale wasn’t available, but was at 96% when the property hit the market in February.

Units at Harvest at Fiddyment Ranch range from one to three bedrooms and 771 to 1,258 square feet. Amenities include quartz countertops and laundry appliances in every unit, a heated pool/spa, a fitness center and outdoor gas grills.

CBRE Capital Markets and CBRE Sacramento Multifamily brokered the deal. The same brokerage has listed two other large, suburban apartment properties in recent weeks: 260-unit Garnet Creek in Rocklin and 410-unit Autumn Ridge in Citrus Heights.

A representative of CBRE was unavailable to discuss the new listings further. But in a news release, the brokerage stated it believed both properties would each sell for $100 million or more.

Garnet Creek, by Cresleigh Homes, is the newer of the two, built in 2018. Autumn Ridge is owned by Oakmont Properties and was built in 1986. Leasing is at 99% and 96%, respectively. Records don’t show any sale for Garnet Creek since it was built, while Autumn Ridge last sold in 2012 for an undisclosed price.

Research firm Yardi Matrix’s May report on multifamily rents offers evidence of why such properties are commanding high prices. According to the report, the Sacramento region saw a 8.3% gain in rents over the last year, the third highest of any region in the U.S.

In particular, rents at “lifestyle” properties — usually newer properties where residents rent by choice — rose by about 12% locally over the last year. The lifestyle description would apply to both Harvest at Fiddyment Ranch and Garnet Creek.

Lifestyle apartment properties have gotten a new boost of attention over the last year from Bay Area residents, working remotely because of the Covid-19 pandemic. In some cases, the cheaper rents in the Sacramento region have compelled a move even as they’re uncertain about putting down money for a single-family home in a highly competitive local real estate market.

(This post first appeared in the Sacramento Business Journal on June 15, 2021. The story appears as published on the Business Journal website.)

USA Properties ranks among nation’s leading affordable housing companies

USA Properties Fund is one of the nation’s largest affordable housing owners in the nation, and was among the leading developers in 2020, according to a just-released report by Affordable Housing Finance.

The company ranked No. 41 on Affordable Housing Finance’s closely watched Affordable Housing Owners list, with 10,735 affordable units at 84 communities in California and Nevada.

USA Properties, which is celebrating its 40th anniversary this year, has been aggressively building affordable housing for decades – and has increased production in recent years.

The Roseville-based company ranked No. 13 on the Affordable Housing Finance Developers list with 983 affordable housing units in the works as of Jan. 1, 2021 – only about 150 shy from landing in the top 10.

USA Properties expanded into market-rate apartment communities several years ago, and has developments in the Bay Area, the Sacramento region and Southern California. “We remain as committed as ever to building affordable apartment communities that provide much-needed housing for low-income residents and investing in neighborhoods and communities,” said Geoff Brown, President of USA Properties. “We’re very proud of our accomplishments and being recognized on the Affordable Housing Finance lists that highlight our ongoing efforts and hard work to provide quality housing.”