Investment Overview

Marcus & Millichap is pleased to present Longfellow Apartments, a rare and compelling opportunity to acquire a 24-unit affordable housing community in Chico, California. This property is ideally positioned for an affordable housing developer or investor seeking to re-syndicate an at-risk California Housing Finance Agency (CFHA)/City Redevelopment Affordable Housing property, maximizing the investment value. Longfellow Apartments is comprised of eight one-bedroom units and sixteen two-bedroom units, all designated for households earning less than 50% and 80% of the Area Median Income (AMI). The property has two regulatory agreements that are set to expire in 2031, classifying the asset as “at risk”, upon January 2026. The first regulatory agreement, through CFHA, requires that 10 of the 24 units must be occupied by individuals with special needs. The second, under the Chico Redevelopment Agency, mandates that 10 units be rented to households earning no more than 50% of the AMI, and 12 units to those earning no more than 80% of the AMI. Longfellow Apartments is comprised of eight one-bedroom units and sixteen two-bedroom units, all designated for households earning between 50% and 80% of the AMI. In January 2026 the property presents a unique opportunity for re-syndication under the Low-Income Tax Credit (LIHTC) program, potentially allowing for capital improvements, and long-term affordability preservation. The Chico housing market remains highly competitive. Following the 2018 Camp Fire, Chico absorbed a significant influx of displaced residents, intensifying demand for affordable housing. Despite the city’s efforts to increase affordable housing and recent construction, the need remains acute, particularly for households earning below 60% of the AMI. The City of Chico has expressed a willingness to help preserve Longfellow Apartments for long-term affordability. Chico, California stands out as a strategic location for housing investment due to its favorable demographics, manageable size, and economic significance in the region. With a population of over 100,000 and a median age in the early 30s, Chico benefits from a youthful, educated, and steadily growing community. A major driver of this demographic profile is California State University, Chico, which not only attracts thousands of students annually but also serves as one of the city’s largest employers. The university’s presence fuels demand for rental housing and supports a vibrant local economy anchored in education, healthcare, retail, and professional services. As the economic and cultural heart of Butte County, Chico offers a stable and resilient environment for long-term real estate investment, particularly in the affordable and workforce housing sectors.