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Apartment Complex ADU Creates New Model for Affordable Housing

Not visible from the street and snuggled in behind a modest four-plex rental unit on Helen Avenue is a 633-square-foot Sunnyvale first that is all heart. It is a stand-alone, one-bedroom accessory dwelling unit (ADU) built on the site of the existing apartment complex owned by ARESA Properties LLC.

The ADU fills with added light from three high windows in the living area, adjacent to a compact but full kitchen. High ceilings give the unit a feeling of spaciousness.

At the ADU ribbon cutting on June 7, Santa Clara County Supervisor Otto Lee and Sunnyvale Mayor Larry Klein presented ARESA Properties with certificates of commendation.

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“I commend Teresa and Arman,” said Klein, who owns an ADU that came with the Sunnyvale home he bought years ago. “What they’re doing here is an example to other landlords. It’s the next step [for Sunnyvale], having a diversity of housing as well as a diversity of people.”

The hearts—and heft—behind the building of the Helen Avenue Apartments ADU are Arman Bashi and Teresa Agustin, a husband-and-wife team whose first names combine to spell ARESA. They are leading by example, hoping to encourage “Mom and Pop” apartment owners to further monetize their existing properties by adding an ADU.

Bashi, ARESA CEO and developer, pointed out the practicality. Buying a four-plex locally might cost $2.1 million—$500,00 per unit. Building an ADU on an existing property costs about $200,000 to $300,000.

“If you have the land, put something on it because it costs half the price of buying an existing property,” said Bashi.

“Land is the most expensive thing to find,” said Supervisor Lee. “It’s so expensive to live here!”

Bashi and Agustin, ARESA VP of operations, principal partner, and consultant, are not building ADUs for the money.

“This isn’t for profit. This is for helping people,” said Bashi. “I think we can make a big difference.”

Since 2015, ARESA has dedicated the rental properties it owns or manages to low-income individuals and families. It accepts client referrals from nonprofits such as Sunnyvale Community Services and Abode Services.

Once homeless, Hulita Inukihaangana, originally from Tonga, her husband and their four sons connected with ARESA and got permanent housing.

“It’s a big blessing that arrived for our family,” she said at the ribbon cutting. “Now we have a place called ‘home.’”

As property manager, Agustin does more than place low-income tenants in homes. She keeps them there, going well beyond connecting them to the appropriate social services.

“We do serve our clients differently, so if you need anything, please let us know,” Agustin told a new tenant.

A few weeks later, the tenant asked for help in learning to drive. ARESA gifted her with six hours of driving lessons.

Another tenant landed an immediate job interview but had no one to watch her two children. Agustin drove everyone to the interview. Then, she sat in the car entertaining the children while their mom aced the interview.

Although Agustin was born in Sunnyvale, her parents immigrated to California from the Philippines in 1977, experiencing the challenges of finding work and housing.

“Because a landlord took a chance on my parents, they had stable housing,” said Agustin.

Her parents worked hard, saved, and opened a grocery market. They invested in local real estate. Helen Avenue Apartments was the second property her parents bought.

“That’s why this location is very special to my heart,” said Agustin.

Bashi is eager to guide others through the process of building an ADU. For information, visit https://aresaproperties.com/.

“The ribbon cutting is to promote this idea,” said Bashi. “It’s to educate and inspire others.”

Related Posts:
Santa Clara Planning Commissioner Transforms Garage into Affordable Housing
New Regulations Boost Interest in Accessory Dwelling Units in Santa Clara

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