SoCal Firm Preserves Affordable Housing with $107M Deal, Aims to Curb Displacement

Los Angeles County, CA – In a significant move to address the region’s critical affordable housing shortage, Eagle Partners has closed a $107 million deal to acquire The Hills at Hacienda Heights, a 350-unit apartment complex. The acquisition, supported by a coalition of investors including Red Stone Equity Partners, JPMorgan Chase, and the California Housing Finance Agency (CalHFA), signals a growing trend toward preserving existing housing stock as a viable strategy for increasing affordability, particularly in a region plagued by high construction costs and limited land availability.

While new construction remains vital, experts emphasize the benefits of preservation. “Preserving existing affordable housing is often faster and more cost-effective than building new units,” explains a local housing advocate. “It also minimizes disruption to communities and helps stabilize neighborhoods.”

A Strategic Shift in Affordable Housing

The deal positions Eagle Partners as a key player in a growing movement that prioritizes preservation over solely focusing on new development. Eagle Partners, an affiliate of Eagle Real Estate Investment Group (EREG), brings over 25 years of real estate experience and a demonstrated commitment to affordable housing solutions. EREG has previously acquired and developed over 5,000 multifamily units and built a reputation for navigating complex financial structures and forging successful public-private partnerships.

The acquisition of The Hills at Hacienda Heights is particularly impactful considering the complex housing landscape of Los Angeles County. The region faces a severe shortage of affordable homes – estimated at over 500,000 units – and rental costs continue to soar. The complex represents nearly 40% of the total apartment inventory in the Hacienda Heights community, making its preservation a significant win for local residents.

Addressing the Regional Housing Crisis

Los Angeles County is grappling with an acute housing affordability crisis. Recent data indicates that renters must earn nearly $50 per hour to afford the average monthly rent, a figure far beyond the reach of many low- and moderate-income households. The growing gap between income and housing costs has contributed to a surge in homelessness and housing insecurity across the region.

“The need for affordable housing is immense,” says a local community organizer. “Every unit preserved, every project developed, makes a real difference in the lives of families and individuals struggling to make ends meet.”

A Coalition for Affordability

The acquisition of The Hills at Hacienda Heights was a collaborative effort involving multiple stakeholders. Red Stone Equity Partners, a national leader in affordable housing finance, played a pivotal role in structuring the deal and securing funding. JPMorgan Chase provided crucial financial backing, recognizing the importance of investing in community development. CalHFA, the state’s housing finance agency, provided critical support through its preservation programs.

CalHFA has actively sought creative strategies to increase and preserve affordable housing options. The agency’s involvement in this deal underscores its commitment to innovative financial structures and collaborative partnerships. “Preserving existing affordable housing is a cost-effective way to address the housing crisis,” says a spokesperson for CalHFA. “We are pleased to partner with Eagle Partners and Red Stone Equity Partners on this important project.”

Minimizing Tenant Displacement

A key focus of the acquisition is minimizing disruption to current residents. Eagle Partners has emphasized its commitment to responsible stewardship and ensuring a smooth transition for tenants. “We understand that preserving affordability must be done in a way that respects the needs of existing residents,” states a representative for Eagle Partners. “We are committed to working with tenants to ensure they have the resources and support they need.”

The specific measures to minimize displacement are still being finalized, but industry experts anticipate a combination of strategies, including phased conversions, relocation assistance, and right-of-first-refusal options for existing tenants. The goal is to provide residents with options and ensure they are not unduly burdened by the transition. “It's crucial to approach these conversions with sensitivity and compassion,” says a housing policy analyst. “Displacing residents should be a last resort.”

A Growing Trend in Preservation
The acquisition of The Hills at Hacienda Heights is part of a broader trend toward preserving existing affordable housing. In recent years, several other organizations have launched initiatives focused on preserving at-risk properties. Ballmer Group, founded by Steve Ballmer, recently committed $75 million to a fund aimed at affordable housing preservation in Southern California. The Housing Authority of the City of Los Angeles (HACLA) has also been actively acquiring and preserving multifamily properties.

This shift toward preservation reflects a growing recognition that protecting existing affordable housing is often more efficient and effective than relying solely on new construction. “Preservation allows us to leverage existing infrastructure and avoid the high costs associated with building new units,” says a real estate developer. “It’s a win-win for everyone involved.”

Looking Ahead

The acquisition of The Hills at Hacienda Heights is a significant step toward addressing the affordable housing crisis in Los Angeles County. However, much more work remains to be done. Experts emphasize the need for continued investment in affordable housing, both through preservation and new construction. “We need a comprehensive approach that combines multiple strategies,” says a housing policy advocate. “Preservation, new construction, and tenant protections are all essential components of a sustainable housing system.”

The successful completion of this deal demonstrates the power of collaboration and innovation. By working together, public and private sector partners can create a more equitable and affordable housing landscape for all. “This is a positive sign,” says a local community leader. “It shows that we can make progress on this issue if we are willing to work together.”