Is Affordable Housing Still a Safe-Haven Investment?
Kairos Investment Management Co.’s Jonathan Needell makes the case for affordable housing investments in the face of heightened economic...
GLENDALE – Kairos Investment Management Co. purchased Forest Manor Apartments, the 103-unit affordable housing property at 625 S. Forest St. in Glendale. According to public records, the buyer acquired the asset from Forest Manor LLP for $12.6 million, or $122,330 per unit. Mike Canori and Jeff Kunitz of CBRE brokered the deal. Built in 1974, Forest Manor offers one studio apartment, along with 74 one-bedroom and 28 two-bedroom units. All of the apartments feature air conditioning, carpeted floors and spacious closets. Community amenities include a swimming pool and onsite laundry facilities. The property was 90% occupied at closing. According to KIMC representatives, the property was attractive because of its location and value-add opportunities. “Kairos is constantly looking for markets similar to Glendale, where there is a strong demand for quality and expertly managed affordable housing communities. In these areas, which tend to be less efficient and competitive, we can apply our differentiating management strategies to provide what we believe to be much needed and superior affordable housing,” said Carl Chang, CEO and founder of KIMC. As part of its value-add strategy with affordable housing, KIMC plans to renovate the asset by updating the units, pool and common area spaces. It also will add new flooring to interior hallways and repair the roof.
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