Madonna Road apartments sell for $10.5M
A 120-unit affordable housing apartment complex in San Luis Obispo has changed hands for $10.5 million.
Seattle-based Vitus Group, an affordable housing developer, purchased the property at 1550 Madonna Road, which is on the west side of San Luis Obispo off Tank Farm Road. The seller was a local affiliate of the United Brotherhood of Carpenters and Joiners of America.
“We knew this acquisition would mean managing a lot of complexity, but the development team, including the Housing Authority of San Luis Obispo, with assistance from HUD, helped make the project a success,” David Beacham, a director in Vitus’ San Diego office, said in a news release published by brokerage firm Arroyo & Co.
The apartment complex includes 120 garden-style units on a 7-acre parcel in the city, Arroyo & Co., which represented the seller in deal negotiations, said. The project was built in 1971 as affordable housing and includes apartments ranging from one to four bedrooms.
Vitus is planning a major renovation of the property, according to the brokerage firm. It purchased the complex using a combination of tax-exempt bonds and low-income housing tax credits. The firm specializes in buying and remodeling affordable housing projects across the nation.