PORTLAND, Ore.--(BUSINESS WIRE)--BRIDGE Housing has acquired an affordable housing community outside of Beaverton, Oregon, preserving 340 apartments that soon face a potential transition to market-rate rents as low-income housing for the long term.
Bethany Meadows consists of income-restricted one- and two-bedroom apartments for households earning 60% of Area Median Income in a growing community near Beaverton, in the Portland Metro Area. Affordability restrictions on the units had been set to expire in 2-3 years.
The acquisition marks the latest investment by BRIDGE Housing to preserve the long-term affordability of housing in communities throughout the West Coast. Preservation is an increasingly important affordable housing strategy as low-income covenants established decades ago are set to expire on thousands of properties.
BRIDGE Housing, the leading nonprofit affordable housing developer and manager on the West Coast, is a mission-driven organization seeking to increase access to affordable housing in a region that is home to some of the costliest housing markets in the United States.
BRIDGE’s portfolio exceeds 13,600 units across more than 130 properties in California, Washington and Oregon with a total development cost of more than $3.5 billion. More than 30,000 people live in BRIDGE communities from San Diego to Seattle.
“By permanently preserving the affordability of Bethany Meadows, we are advancing our mission and benefiting hundreds of families in a meaningful way for years to come,” said Ken Lombard, BRIDGE Housing President and CEO. “We are actively pursuing many development and preservation opportunities, with the goal of allowing more residents to enjoy the dignity of a home they can afford. If you own a property with affordability covenants that are nearing expiration, we want to hear from you.”
Bethany Meadows is a garden-style complex, with two- to three-story buildings across two separate phases. Phase I, built in 1997, has 208 units. Phase II, built in 1998, has 132 units. BRIDGE purchased both phases, as well as 577 surface parking spaces. The adjacent properties are located in a prime neighborhood close to job centers, public transit, and high-performing public schools. Amenities include a clubroom, fitness center, pool, and spa.
BRIDGE Housing’s investment was supported by an innovative financing arrangement with Morgan Stanley and National Equity Fund that provides a $250 million revolving credit facility, enabling BRIDGE to move quickly to acquire and preserve 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 government tax credits.
Since 1983, BRIDGE has been an innovative leader in affordable housing on the West Coast by creating strong communities, improving residents’ lives, and delivering positive social impact. BRIDGE is currently accelerating its growth plans, harnessing both ground-up development and opportunistic acquisitions to significantly extend its reach. More than 10,800 affordable apartments are in the development pipeline, and additional acquisitions are planned over the coming weeks to permanently preserve more affordable units in high-cost regions.
“Our talented BRIDGE team and our many partners are making tremendous strides in delivering affordable housing efficiently and sustainably, along with high-impact resident services,” said Executive Vice President Sierra Atilano, BRIDGE’s Head of Development. “We are accelerating our work in both development and acquisition as we seek to significantly expand our portfolio in the West. We are excited to continue accelerating our work at scale to make a meaningful, lasting difference for families and communities.”
Bethany Meadows is BRIDGE Housing’s second recent investment in Washington County, following the June opening of Cedar Rising, an 82-unit affordable housing community for families in the Aloha area. This year alone, BRIDGE has celebrated groundbreakings or grand openings in Long Beach, Oakland, San Francisco, Seattle, Portland, and other locations. BRIDGE works closely with a variety of financing partners in the public and private sectors and enjoys an AA- credit rating from S&P Global Ratings, the highest for any nonprofit housing developer. Last year, BRIDGE received its largest ever philanthropic donation – $8 million – from philanthropist MacKenzie Scott’s Yield Giving organization.
About BRIDGE Housing
BRIDGE Housing 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 has participated in the creation of more than 21,000 affordable homes in California, Oregon and Washington, with a total development cost of $5.8 billion. Its current portfolio totals more than 13,600 apartments that are home to 30,000 residents, with more than 10,800 units in the development pipeline. For more information, visit www.bridgehousing.com.
