Transforming Market-Rate Housing into Middle-Income Opportunities: A Major Public-Private Partnership in The South Bay | Hawthorne, CA

12530 Crenshaw Blvd, Hawthorne, CA 90250

Key Highlights for Multifamily Investors:

• Middle-Income Housing Expansion: Standard Communities and Faring are leading the transformation of the Millennium South Bay Apartments (now known as AIRO @ South Bay) into affordable housing for middle-income families and essential workers.

• Strategic Location: This 230-unit mixed-use development is located near major employers like SpaceX and Tesla, as well as public transit (Metro Green Line Crenshaw Station), enhancing its appeal to the workforce.

• Investment Details:

  • Acquisition Price: $140 million

  • Reserves: $17.5 million allocated for long-term operational and physical sustainability

• Green Certification: The property is LEED Gold certified, featuring a solar array producing 250,000 kWh annually and reducing 195 tons of CO₂ emissions.

• Project Overview:

  • Developer Collaboration: Standard Communities partnered with Faring, CSCDA Community Improvement Authority, and the City of Hawthorne.

  • Workforce Housing Goals:

    • 66% of units for incomes below $82,000/year

    • 33% of units for incomes at or below $66,000/year

  • Tax-Exempt Financing: Leveraged by CSCDA to reduce rents for residents earning between 80%-120% of Area Median Income (AMI).

• Amenities and Features:

  • Modern Living Spaces: 230 studio, one- and two-bedroom apartments built in 2021.

  • Lifestyle Amenities: Luxury pool deck, coworking spaces, fitness center, social lounge, retail spaces, and outdoor courtyards.

  • Transit-Oriented: Proximity to Metro’s Green Line enhances accessibility for residents.

• Key Takeaways for Multifamily Investors:

  • Innovative Financing: Tax-exempt bond structures provide a viable model for transforming market-rate housing into affordable housing.

  • Middle-Income Focus: Addressing the growing gap in housing affordability for essential workers in California's high-cost markets.

  • Environmental Impact: Sustainable practices like solar energy align with modern investment trends focusing on ESG (Environmental, Social, and Governance) metrics.

  • Demand for Affordability: With the average home price in Hawthorne exceeding $900,000, this project meets the critical need for affordable, high-quality housing.

• Why It Matters:

  The Millennium South Bay Apartments project is an excellent case study in addressing housing challenges through public-private partnerships, ensuring that middle-income workers can access quality housing near employment hubs. For investors, it underscores the potential for profitable yet socially impactful ventures in multifamily real estate.