Step Up Housing, Sack Capital Partners and Align Financing Partners Acquire Hancock Terrace for $75M

Why It Matters

The conversion adds critical affordable units to a tight housing market while demonstrating growing investor confidence in Santa Barbara County’s residential sector.

Key Takeaways

• $75M purchase of 272‑unit Hancock Terrace completed
• New owners plan converting building to affordable housing
• Largest suburban multifamily sale in Santa Barbara County ever
• Deal reflects accelerating residential investment amid tech influx
• Blosser Ranch gets $174M financing; La Vista sold for $116M

Pulse Analysis

Santa Barbara County, long viewed as a peripheral market to Greater Los Angeles, is experiencing a notable uptick in multifamily activity. Recent tech and aerospace inflows have attracted capital, prompting developers to pursue larger projects such as the 1,500‑unit Blosser Ranch, which secured a $174 million construction loan. Parallel to these developments, record‑setting sales—like Westview Capital’s $116 million acquisition of La Vista Apartments—underscore a shifting investment landscape where high‑value transactions are becoming the norm rather than the exception.

At the center of this momentum is the $75 million sale of Hancock Terrace, a 272‑unit complex completed in 2016. The transaction, brokered by Institutional Property Advisors, brought together nonprofit Step Up Housing, Sack Capital Partners, and Align Financing Partners, all committed to converting the property into affordable housing. This conversion not only addresses a pressing supply gap for low‑income residents but also illustrates how private‑public partnerships can leverage existing assets to meet community needs without the delays associated with ground‑up construction.

The broader implications extend beyond a single building. By demonstrating that sizable capital can be deployed for both market‑rate and affordable projects, the deal signals confidence in the county’s regulatory environment and its capacity to support diverse housing strategies. Developers are likely to view Santa Barbara County as a viable arena for future investments, especially as financing sources become more receptive to mixed‑use and affordability‑focused initiatives. This evolving dynamic could catalyze further redevelopment, stimulate local job growth, and help mitigate the region’s chronic housing affordability challenges.

Deal Summary

The Towbes Group sold the 272‑unit Hancock Terrace multifamily complex in Santa Maria for $75 million. The buyer consortium—nonprofit Step Up Housing, Sack Capital Partners and Align Financing Partners—plans to convert the property into affordable housing. The transaction was brokered by Institutional Property Advisors.