A groundbreaking ceremony was recently held to mark the start of the implementation of the new Workforce housing apartment in San Diego. The ceremony was held by McKinney Capital at the project’s site which is located at 4233 Kansas St. McKinney is developing the project together with Naturally Affordable Housing LLC.
Other contributors to the project include TIERRA PP LLC, a provider of utility solutions, and Civic San Diego, the Middlemarch Fund that made an equity investment. The Bank of Southern California gave a construction loan for the Workforce housing apartment in San Diego.
The neighborhood will be in San Diego’s North Park, at the intersection of Kansas and Boundary Streets. This location is in close proximity to several amenities including many of the city’s dining, shopping, and recreational destinations. Moreover, it is just 5 miles from the downtown area.
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Workforce housing apartments in San Diego to contribute to the regions ongoing multifamily market growth
The new development’s construction is starting at a time when nearly all segments of San Diego’s multifamily market are experiencing significant growth.
According to a June 2022 study from Yardi Matrix, the city saw job growth of 7.4%. This is reportedly much above the national average of 4.7%. Additionally, according to data from the same report, the city’s transaction volume continued its record-breaking trend in 2021. US$ 731 was exchanged over the first four months of the year and demand exceeded 8,445 units in its construction pipeline.
Although home prices increased by 14.31%, San Diego surpassed San Francisco to become the least affordable city in the country. Roughly 70% of middle-income households are unable to afford rent, according to the city’s leaders and a February 2022 report from OJO Labs. However, the actual housing affordability gap in the city still exists.
Damian McKinney stated that the Kansas Street Workforce Housing initiative intends to assist address the dearth of affordable housing. This is especially for working families with moderate incomes and young professionals. McKinney is the managing director of McKinney Capital.
