Addressing the Affordability Crisis in Disneyland’s Backyard
Disneyland may be known as “The Happiest Place on Earth,” but the city it sits in – Anaheim – is challenged in terms of availability of affordable housing. According to an analysis by Apartments.com, average rents there continued to climb over the past year, settling at $2,083 per month as of April 2025 for a one-bedroom apartment.
In April 2024, the city’s housing and community development department released a report indicating that there were “over 30,480 households on the combined Anaheim Section 8 Housing Choice Voucher program waiting lists and over 4,122 households on the Affordable Housing interest list.”
While DisneyLandForward, the $1.9 billion, multi-year expansion plan approved by the Anaheim city council in May 2024 enabling Disney to adapt and invest further in the region, includes a $30 million commitment from Disney for affordable housing, a shortfall of affordable units in the city persists. Creation of new affordable housing is critical as is the preservation of what currently exists.
Enter BLDG Partners (BLDG) – a Los Angeles-based privately held real estate investment firm who was ready to move forward with the purchase of Park Vista Apartment Homes, a 392-unit gated garden-style community located just a few miles from Disneyland. Structuring the loan was critical because strict requirements had to be met to preserve hundreds of affordable units in an area with a significant working-class population and affordability challenges. BLDG, whose focus includes the preservation of affordable and workforce housing, approached NewPoint Senior Managing Director Martin Fayer in Q3 2024 to secure financing for the acquisition of this 100% affordable housing property.
Navigating a Volatile Interest Rate Environment While Preserving Affordability
Fayer has a long-standing relationship with BLDG Partners, providing financing for many of their projects over the course of the last decade, including Huntington Hacienda II, a 117-unit affordable property in east Los Angeles, and Burke Lake Gardens, 100 units for low-income seniors situated just outside Washington, DC.
“They approached me, along with their broker, Scott Melnick of Melnick Real Estate Advisors, early in the acquisition process,” said Fayer. “We were in an extremely volatile interest rate environment. The seller had targeted a closing toward the end of Q1 2025, so time was of the essence,” he adds.
Park Vista Apartments consists of 94 two-story buildings spanning 20 acres in northern Orange County. The property was originally constructed in 1958 and underwent significant renovations in 2001. The 2001 upgrades used funds provided by California’s Tax Credit Allocation Committee (CTCAC) and the Anaheim Housing Authority. At the time, the property entered into three regulatory agreements with the latest expiring in 2057. Of the 392 units, 30% are designated for tenants earning no more than 50% of the Area Median Income (AMI), 70% are for tenants earning up to 60% of AMI, and three exempt units. Another strict requirement that would keep a tax abatement in place and the units affordable was the presence of a non-profit partner in the property’s ownership structure.
Heading into the acquisition, these were all factors Fayer had
Financing with a Lasting Impact
Against the backdrop of a volatile interest rate environment, Fayer relied on solid relationships with all involved parties to get the timing right. “In the end, we were able to structure a Fannie Mae loan that enabled BLDG Partners to secure the proceeds necessary to close the transaction,” said Fayer. “And the existing non-profit partner stayed onboard and Park Vista’s tax abatement and affordability were secured well into the future.”
The fixed-rate $82 million Fannie Mae loan that resulted features a seven-year term with five years interest-only and a 35-year amortization schedule at 75 percent of cost.
“We were able to structure the deal with just the first mortgage – no other credit enhancements or subordinate financing of any sort from local, municipal, or state authorities,” said Fayer. “Leaving these extremely limited resources out of Park Vista allows them to sustain affordable housing elsewhere in the community.”
With rents well below market averages, this was an attractive property for an Agency financing. Creating and preserving affordable housing is central to Fannie Mae’s mission and the preservation of Park Vista’s units was a win for all parties, particularly city residents.
“This transaction is a great example of how creative structuring and strong collaboration can deliver long-term affordability without overextending public resources,” stated Fayer. “Park Vista remains a stable, affordable community for years to come – proving that with the right team and right approach, challenging deals can create meaningful, lasting impact.”