New owner plans ‘middle-class’ housing in Cathedral City development stalled by bankruptcy

The new owners of an undeveloped section of the Verano Master Planned Community in Cathedral City tell News Channel 3 their goal "is to create a product and new supply that will fit the needs of the growing middle-class community in the Desert (without breaking the bank)"

The neighborhood is located at Verano and Rio Guadalupe.

Northlight Capital Partners LLC acquired the remaining 138 acres of residential development land for about $20 million. According to a news release, "the property includes 892 partially platted lots entitled for a variety of detached single family residential and multifamily units. As part of its acquisition, Northlight will work with various governmental agencies to construct a 2.5 million gallon water reservoir that will service the Verano community."

News Channel 3 reached out to the CEO Ben Gerig of Northlight Capital partners.

In a statement, Gerig said, "Over the past several years, Palm Springs has enjoyed a solid and growing commercial base moving it from a traditional second home market to a primary home market... We are excited about the opportunity to bring more quality, affordable housing options to the residents of the Coachella Valley."

According to Kevin Stanley Realtor, the median price of a detached home in the Coachella Valley in June was $700,000. The California Association of Realtors reports that in June, the median sold price of existing single-family homes was $645,000 in Riverside County.

The City of Cathedral City provides a list of affordable housing on their site. Click here for more information.

The California Housing Consortium explains "according to the federal government, housing is “affordable” if it costs no more than 30% of the monthly household income for rent and utilities. Most affordable housing developments are built for families and individuals with incomes of 60% or less than the area median income (AMI).