The 1.35-acre site of the former 35-unit Tower Motel at 1501 Broadway in Chula Vista 91911, has been sold for $2.8 million.
The buyer was Los Vecinos, L.P., a California limited partnership, 625 Broadway, Suite 2000, San Diego 92101. Wakeland Los Vecinos, LLC is the managing general partner of the new ownership and Wakeland Housing and Development Corp. is the manager and sole member of Wakeland Los Vecinos. Kenneth L. Sauder is president and CEO of Wakeland Housing.
The acquisition was financed with loans of $1.7 million from Wells Fargo Bank (NYSE: WFC), and $1.1 million from Low Income Investment Fund.
The sellers of the property (assessor's parcel 622-092-05) were Charles and Sarah Jung.
The former motel was built in 1960 and closed in 2005. In its last year, the property had been a crime magnet for Chula Vista police.
The new ownership, which specializes in infill affordable housing projects, plans to tear down the vacant motel buildings and construct a $17 million, 42-unit, affordable apartment project called Los Vecinos. Rents will be linked to income.
The city of Chula Vista will provide $5.5 million through its redevelopment agency. The apartment complex will also provide up to 90 percent of energy from on-site methods.
Wakeland has built apartments in San Diego's East Village and San Ysidro, and condominiums in National City.