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JULY 2025

Aspen Real Estate Financial, California Affordable Housing Agency and Housing Authority of the County of San Bernardino Pay $12.3 Million for Multifamily Community in San Bernardino

Lee & Associates, the largest broker-owned commercial real estate firm in North America, announced today that its LA North/Ventura office has brokered the acquisition of Echo Apartment Homes, a 38-unit multifamily community located at 505 East Rialto Avenue in San Bernardino, California, to Aspen Real Estate Financial LLC (AREF) in partnership with the Housing Authority of the County of San Bernardino (HACSB) and CalAHA for $12.3 million (approximately $323,000 per unit). This is the second AREF acquisition with this structure in the past 12 months. In September 2024, the company partnered with Stanislaus Regional Housing Authority and CalAHA to acquire Rumble Road Apartments in Modesto, California.

The HACSB, on a 40-year lease to own the property, will begin implementing this workforce housing platform at the property where the rent levels are structured to fall within workforce housing levels. Housing Authorities along with their city or school district partners do not have to provide funds for this program. AREF handles the capitalization of the acquisition, along with adequate reserves to cover lease payments and operating expenses in recessionary periods. This program is a long-term Equity Accreting lease, where AREF donates all the equity and upside value to the Housing Authority. Additionally, the housing authority gets 100% of the cash flow from the property.

“Workforce housing plays a vital role in addressing the gap between subsidized housing and market-rate rents,” said Rishad Mitha, Deputy Executive Director for HACSB. The purchase of Echo Apartments is an opportunity for us to bring new housing opportunities to the community, including opportunities for those often overlooked in traditional housing markets without the need for a large capital contribution. We are excited about our partnership with Aspen Real Estate Financial to make this purchase, which made good financial sense for the Housing Authority and aligns with our mission to provide housing opportunities.”

Matt Benwitt of Lee & Associates LA North/Ventura represented the buyer in the transaction and is the exclusive broker for AREF. Nick Benjamin and Tom Lewis of CalAHA CEO and legal counsel participated in the lease to own structure for their Housing Authority of the County of San Bernardino. Rishad Mitha, Deputy Executive Director of Housing Authority of County of San Bernardino and their employees undertook the due diligence for the formation of the lease.

“We continue to see a huge shortage of workforce housing in Southern California and across the United States as market rents continue to climb,” said Matt Benwitt, Associate, Lee & Associates LA North/Ventura. “Unlike the typical rent restricted development projects which can take years to provide, AREF’s program focuses on existing Class A or B properties where the benefits are immediate. AREF is focused on acquiring new or nearly new Class A and B multifamily properties in California where it can implement its program.”

“Echo Apartments represents a landmark transaction for the City of San Bernardino, achieving the highest price per unit in over two decades,” said Carlson, senior vice president at CBRE. “This sale not only reflects the strength of the Inland Empire multifamily market but also highlights the positive impact that strategic public-private partnerships can have on the community. The Housing Authority’s involvement was essential in aligning investment with long-term housing goals, helping to ensure that this development contributes meaningfully to the stability and growth of the local area.”

Echo Apartment Homes consists of 26 two-bedroom units averaging 1,059 square feet, six three-bedroom units averaging 1,192 square feet and six four-bedroom units averaging 1,248 square feet. Each unit includes stainless steel appliances, including refrigerator, range, dishwasher, microwave, and garbage disposal, full-sized, side-by-side washer & dryer, plank flooring and large covered patio. Community amenities include state-of-the-art multi-sport court, covered parking, controlled access, professional, on-site management staff and 24-hour on-site maintenance.

ABOUT ASPEN REAL ESTATE FINANCIAL

Aspen Real Estate Financial LLC (AREF) has developed a mission driven workforce housing (moderate income) platform for the creation of Class A & B quality affordable housing nationwide. AREF will act in partnership with Municipalities for the acquisition, new construction or rehabilitation to preserve units of affordable housing. The workforce housing transaction structure is a long-term lease to a (City, Housing Authority, etc.) The structure program allows AREF to present work force housing at 15-20% below comparable market rents to achieve the moderate-income rents (80%–120% of AMI). AREF’s overall mission is to remove the stress to tenants facing historically massive rental increases with rent increases programed at a fixed moderate rate based on historical HUD increases. AREF has provided the following Reserves:

AREF has provided $436,538 during lease up to cover lease payments & Operating Expenses.

AREF has provided $260,000, to cover projected Cap Ex expenses above the $650/unit year set aside to meet the projected Cap Ex requirements over the term of the lease.

AREF has provided at closing $78,600 for an introductory period to establish a RUBS program and buy down reserve for three-bedroom units. For more information, please visit www.arefllc.com.

ABOUT LEE & ASSOCIATES

Lee & Associates offers an array of real estate services tailored to meet the needs of the company’s clients, including commercial real estate brokerage, integrated services, and construction services. Established in 1979, Lee & Associates is now an international firm with offices throughout North America. Our professionals regularly collaborate to make sure they are providing their clients with the most advanced, up-to-date market technology and information. For the latest news from Lee & Associates, visit lee-associates.com or follow us on Facebook, LinkedIn, Twitter and Link, our company blog.