Eagle Partners announced the closing of a $107 million acquisition of The Hills at Hacienda Heights, a 350-unit apartment community located in the San Gabriel Valley region of Los Angeles. The company will convert the market-rate property into long-term affordable housing and invest in improvements intended to enhance residents’ quality of life. The acquisition was completed in partnership with Red Stone Equity Partners, JPMorgan Chase, the California Housing Finance Agency (CalHFA), and Affordable Housing Access.
Through the conversion, Eagle Partners will apply affordability restrictions to as many as 350 units for households earning up to 80% of the Area Median Income. The firm stated that it intends to minimize tenant displacement as part of the transition.
The Hills at Hacienda Heights represents the second and largest CalHFA affordable housing preservation equity transaction completed in the state. CalHFA participated through its affordability preservation financing programs, which are intended to maintain the existing housing supply for low- and moderate-income families.
Red Stone Equity Partners and JPMorgan Chase jointly executed the investment through Red Stone’s Preservation Equity platform. The platform focuses on acquiring and preserving existing affordable rental housing in markets across the United States. JPMorgan Chase provided most of the investment capital as part of a long-standing affordable housing investment strategy.
The community spans 10.5 acres and was initially constructed in 1970. It includes recently renovated one-, two-, and three-bedroom residences with amenities such as a gym, business center, three pools, spa facilities, and extensive outdoor common areas. The property comprises nearly 40 percent of the total apartment inventory in Hacienda Heights.
Eagle Partners noted that the acquisition reflects a broader effort to align institutional capital with goals that support community stability while still delivering financial returns to investors. Institutional Property Advisors endorsed the transaction.
KEY QUOTES:
“There is substantial need to increase access to and maintain the quality of attainable housing across Southern California and beyond. We are proud to partner with best-in-class organizations to find creative ways to meet the needs of the community while also creating value for our investment partners.”
Taylor Friend, Managing Partner, Eagle Partners
“As part of the state’s overall housing finance strategy, CalHFA is continually exploring creative ways to boost and preserve the supply of affordable housing for Californians earning low to moderate incomes. We are thrilled to be part of this collaboration that will preserve affordability for so many deserving families.”
Tony Sertich, Executive Director, California Housing Finance Agency
“Investing in The Hills at Hacienda Heights’ affordable conversion alongside Eagle Partners represents the kind of strategic collaboration that Red Stone seeks with sophisticated operators as we continue to prudently deploy impact capital into affordable housing. This transaction reflects our commitment to preserving affordability, and we look forward to seeing the lasting impact this investment will have for residents and the broader Hacienda Heights community.”
Brian Fishback, Director of Alternative Investments, Red Stone Equity Partners
“This acquisition underscores what is possible when sophisticated capital aligns with a clear purpose, and that positive impact can be married with compelling financial returns to better the communities that we operate within. In addition, we want to thank Kevin Green and the Institutional Property Advisors team for their collaboration throughout the sales process.”
Shahny Lutfeali, Managing Partner, Eagle Partners
