LOS ANGELES, CA - Ethos Real Estate, an affordable and mixed-income multifamily investment firm, announced the company has closed on the $76 million purchase of the Residences at Woodlake, a 276-unit multifamily property in the Crenshaw District of Los Angeles.
Under the deal, Ethos will be converting the formerly market rate property into deed restricted affordable housing through a unique public private partnership that leverages a California statutory property tax exemption. Under the deed restriction, half of the units will be restricted to families earning up to 80% of the Average Median Income (AMI) for Los Angeles, and 10 percent will be restricted to families earning up to 60% of AMI, for 55 years.
“We are excited to be scaling the potential for public private partnership around the production of affordable housing,” said Jennifer McElyea, Ethos Real Estate Managing Partner. “California has a critical shortage of public funds to address the housing crisis and innovative models will absolutely need to be part of the solution.”
The property was the second purchase for Ethos’ joint venture with GCM Grosvenor, investing on behalf of its clients. GCM Grosvenor (Nasdaq: GCMG) is a global alternative asset management solutions provider with approximately $73 billion in assets under management across private equity, infrastructure, real estate, credit, and absolute return investment strategies.
“We are proud to be partnering with Ethos in ways that creatively address the shortage of affordable housing in communities across California,” said Peter Braffman, Managing Director at GCM Grosvenor.
Source: Ethos Real Estate