The Bay Area and Greater Portland deals will create or preserve 319 affordable apartments as BRIDGE Housing continues expanding its $4 billion affordable housing portfolio on the West Coast
SAN FRANCISCO (December 12, 2024) – BRIDGE Housing, the leading nonprofit affordable housing developer and manager on the West Coast, has purchased two multifamily communities in California and Oregon, accelerating its dual-track strategy to use acquisitions to both create and preserve urgently needed housing for low-income households.
The acquisitions of Avalon Berkeley (now named Viewpoint), in Berkeley, Calif., and Berry Ridge, in Gresham, Ore., will add 319 affordable units to the BRIDGE Housing portfolio by preserving 262 affordable apartments and creating 57 more by converting market-rate units. Just in the past month, BRIDGE Housing has closed transactions to preserve more than 600 apartments as it steps up acquisitions to prevent affordable housing from transitioning to market-rate rents. Preservation is an increasingly important strategy as low-income covenants established decades ago are set to expire on tens of thousands of affordable homes on the West Coast.
“The Avalon Berkeley and Berry Ridge acquisitions demonstrate our commitment to maintaining and increasing the supply of stable, long-term affordable housing in some of the country’s costliest markets,” said BRIDGE Housing President and CEO Ken Lombard. “By preventing the expiration of affordability covenants and adding new rent restrictions to existing market-rate units, BRIDGE Housing is leveraging our acquisition strategy to make a meaningful impact on residents’ lives and communities.”
BRIDGE Housing is also expanding ground-up development to grow its $4 billion portfolio, which will total nearly 14,800 units by the end of the year, with more than 10,000 additional units in the development and acquisition pipelines. This year alone, BRIDGE completed 10 new communities and began construction on seven others.
Viewpoint consists of 94 studio, one- and two-bedroom apartments, of which 14 are rent restricted for households earning up to either 50% or 80% of Area Median Income (AMI). Of the remaining 80 market-rate units, BRIDGE Housing plans to convert 57, increasing the number of affordable apartments to 71, or 75% of the full community. Built in 2014, the five-story building includes a clubroom, fitness center and rooftop lounge with views of downtown San Franscico and the Bay. It is located within walking distance of stores and adjacent to the Berkeley Amtrak train station and the I-580, providing quick access to jobs, health care and other necessities throughout the Bay Area.
This is the second Bay Area property BRIDGE Housing has acquired from AvalonBay Communities. In 2022, it purchased a 195-unit community in Daly City, south of San Francisco, and preserved 99 apartments, more than half the total, in perpetuity for households earning up to 80% AMI.
Berry Ridge was built in 1998 and consists of 248 one- and two-bedroom apartments, all of which are rent restricted for households earning up to 60% AMI, under a regulatory agreement set to expire in three years. BRIDGE Housing plans to preserve the entire property at its current affordability level for the long term. The community of two-story garden-style apartments includes a clubroom, fitness center, and pool/spa. Gresham is about 16 miles east of downtown Portland, offering convenient access to jobs and services in Oregon’s largest metropolitan area.
Both acquisitions were supported by an innovative financing arrangement with Morgan Stanley and National Equity Fund. The $250-million revolving credit facility enables BRIDGE Housing to move quickly to preserve or create affordable housing. By using private equity and debt, the strategy reduces the time and complexity of traditional affordable housing finance, in which multiple partners must apply for limited government tax credits.
“We’re thrilled to extend our presence and impact in the East Bay and Greater Portland with these two new BRIDGE Housing communities,” said BRIDGE Executive Vice President Sierra Atilano, who oversees development and acquisitions. “Along the length of the West Coast, BRIDGE is moving quickly and working overtime with our many partners to make progress in relieving the shortage of affordable housing.”
Along with financial partners, BRIDGE Housing also collaborated on these transactions with the cities of Berkeley and Gresham; Home Forward, Portland’s housing authority; Oregon Housing and Community Services; and the California Municipal Finance Authority.
During an active year for groundbreakings and grand openings from California to Washington, Berry Ridge marks BRIDGE’s third recent affordable housing project in Greater Portland. In November, it acquired Bethany Meadows, a 340-apartment community near Beaverton, and in June, it opened Cedar Rising, an 82-unit building in the Aloha area of Washington County. In addition to its acquisitions, BRIDGE Housing has led $1.2 billion in recent development activity in California, Oregon, and Washington.
Since 1983, BRIDGE Housing has been an innovative leader in affordable housing on the West Coast. With a focus on community development and comprehensive support services, BRIDGE creates strong communities, improves lives, and delivers positive social impact for its more than 30,000 residents.
About BRIDGE Housing
BRIDGE Housing Corporation is a leading nonprofit developer, owner, and manager of high-quality affordable housing on the West Coast, with a mission to strengthen communities and improve lives. Founded in 1983, BRIDGE Housing has participated in the creation of more than 22,000 affordable homes in California, Oregon, and Washington, with a total development cost of $5.8 billion. Its current portfolio totals more than 14,000 apartments that are home to more than 30,000 residents, with more than 10,000 additional units in the development and acquisition pipelines. For more information, visit www.bridgehousing.com.