In a slow market, any transaction stands out. But the number of units Standard Communities took a controlling interest in this week would be newsworthy in any environment.

Standard, an apartment owner with headquarters in New York City and Los Angeles, acquired a controlling interest in an affordable housing portfolio of nearly 3,200 units in Florida and Georgia this week — its largest purchase ever. The firm plans to invest almost $25 million in capital improvements across the portfolio to ensure the communities remain affordable, according to a press release.

Last year, Jeffrey Jaeger, co-founder and principal of Standard Communities, told Multifamily Dive the company was in a position to provide capital to owners who might need it.

“As deals come up, I think we’re well positioned to add equity in those situations where there’s less financing available,” Jaeger said. “And I think there are still other financing alternatives. You can’t do a completely new set of financing. You’re still mainly working with the agencies and a lot of the same lenders. It’s just that you’re adding additional financing sources that might not be there for market-rate buyers.”

By purchasing a controlling stake in the 3,200 units, Standard makes its first acquisition in Florida and its first affordable purchase in Georgia. The company also brings its number of units under control to 19,000. Last year, Jaeger said he wanted to get the company to 50,000 apartments. This acquisition takes the firm closer to that goal.

As it grows, Standard has some advantages over market-rate competitors in this environment, according to Jaeger. 

“We’re much better positioned to look for expansion and gain market share in a market downturn,” he told Multifamily Dive. “The vast majority of our portfolio is financed with long-term, fixed-rate debt. For our market-rate competitors, typically, the life cycle on deals is much shorter, whether it’s three to seven years. Usually, they’re going to have deals rolling in different parts of the cycle, and they’re going to be dealing with a lot of debt issues on various deals.”

Standard’s asset management, construction management, acquisitions and compliance divisions investigated the properties in Florida and Georgia to prioritize goals to improve residents’ safety, comfort and well-being, according to the press release.

Standard will focus on resident services in these communities. It partnered with the nonprofit organization Apartment Life, whose on-site associates will work to increase residents’ access to education, foster community engagement, reduce food insecurity, improve healthcare access and provide opportunities for economic mobility. 

“High-quality, well-maintained affordable housing is crucial to the well-being and livelihood of so many people. We are proud to have the opportunity to continue to deliver on our vision of providing stable, vibrant places for our residents to call home,” Jaeger said in the press release.

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