Redefining Affordable Housing | Student Housing Investment

Interview

Key Takeaways

A policy window is creating a genuinely new development model:

Mayor Bass' Executive Directive 1 — signed two days after inauguration — and its successor AHIP have together unlocked buy-rights approvals guaranteed within 60 days, density bonuses that can quintuple allowable units, zero parking requirements, and LADWP's Project Powerhouse program that brings utilities to the door at the city's expense. These benefits are diametrically opposite to the capital-A affordable model most investors associate with the sector.

Vertical integration is the core competitive advantage:

Angeleno controls every stage in-house — acquisitions, design, entitlement, construction management, and asset management — underpinned by a proprietary database that has digitized every parcel in Los Angeles County. Rather than reacting to broker deals, the firm designs a standardized prototype, identifies every lot where it pencils, and goes directly to sellers. The result is a programmatic, repeatable execution model that compresses timelines and eliminates one-off underwriting risk.

Structural demand and below-market positioning create durable occupancy:

Angeleno targets areas of higher opportunity — B/B+ locations near transit, parks, quality schools, and employment — where fair market rents run 10–15% above the HUD-restricted rents in their buildings. That discount is compelling for income-qualified tenants (including six-figure earners at 80–120% AMI) and voucher holders alike. Industry vacancy for this product across Los Angeles runs approximately 2.5%; Angeleno underwrites a conservative 5%.

The return stack is built on cost efficiency, not subsidy:

Angeleno builds at approximately $300,000 per unit — roughly half what the city spends and well below the $500,000+ market value per unit. A welfare tax exemption, structured through a nonprofit partnership and state agency grant, removes approximately 90% of property tax, driving operating expenses into the low 20% range versus the low 30% typical for market-rate multifamily. The resulting unlevered yield on cost ranges from 7.25–7.5% at covenant rents to 9%+ with voucher tenancy and modest rent trending.

The

Angeleno

Team

Brandon Hance leads Angeleno as Chief Executive Officer, overseeing strategy, finance, and operations for the firm. Before entering real estate development, he was a two-time tech entrepreneur who successfully sold his first business to Platinum Equity Partners and The Gores Group, and his second business to Zazzle. His background in building and scaling technology companies informs Angeleno's data-driven, systems-oriented approach to affordable housing development.

Beyond his professional achievements, Brandon serves as Chairman of the Los Angeles chapter of Gen Next — a network of leaders focused on tackling generational challenges in economic growth, education, and global security. A long-time resident of Los Angeles, he graduated from the University of Southern California, where he was a quarterback on the two-time national championship football team.

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Angeleno

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