Multifamily apartment communities to provide high quality affordable housing for residents
IRVINE, Calif., Aug. 31, 2022 (GLOBE NEWSWIRE) -- CPP (Community Preservation Partners), a mission-driven affordable housing preservation developer, today announced the acquisition of three multifamily housing communities located in California, New Mexico, and Arizona. The properties include Park Villa apartments in El Cajon, CA, comprised of a two-story garden style residential building containing 38 studio, one- and two-bedroom units designated at 30-60% of area median income (AMI). The second property, Vista Mesa Villa in Grants, NM, includes two three-story buildings containing 100 one- and two-bedroom units, set at 60% AMI. Lastly, Bethany Glen, in Glendale, AZ, includes 25, single-story garden style residential buildings containing 150 one-, two- and three-bedroom units as well as two additional buildings, one containing an employee unit and the other containing an office. The 150 units will be LIHTC income-restricted to family households earning at or below 50% AMI.
“Critical, high-quality, affordable housing is extremely important in these markets, and we are dedicated to helping ensure that communities are able to support residents who need more housing options,” said Anand Kannan, president of CPP. “Investing in these properties and communities demonstrates our commitment to affordable housing preservation across the country.”
Park Villa is the sixth property CPP has closed in California this year. The property was built in 1959 and had outdated fixtures, requiring significant interior and exterior upgrades. The project has a total development cost of approximately $18 million. Construction is underway and is expected to be completed in December 2022. The purchase price was $9 million.
The planned renovations include replacing windows, heating and cooling units, flooring, cabinets, countertops, appliances, lighting and plumbing. Upgrades will be made to improve accessibility. The pool will also be filled in and replaced with a new lounging and gathering area with games.
Vista Mesa Villa is the third property CPP has worked on in New Mexico, with the JL Gray team serving as owner and operator. It is one of very few affordable housing projects in the area, making it extremely important to the surrounding community. CPP’s total development investment is expected to be approximately $17 million, with a purchase price of $6.5 million and a $4.7 million total investment in renovations, or $45,000 per unit. Construction has started and is anticipated to finish in spring 2023.
CPP will convert five units to be ADA accessible and ensure all property amenities are on the accessible path of travel. The rehab will also include unit upgrades to floors, counters, cabinets, appliances, LED lighting, windows, doors and paint. Boilers will be replaced, the roofing will be repaired, electrical, and plumbing systems in the laundry rooms will be repaired, new playground equipment will be installed and CPP will provide free wi-fi access to all residents.
“This transaction allows us to rehab the property and by partnering with JL Gray, we are also bringing this affordable housing community under local management and ownership,” said Anand Kannan, president of CPP. “This project will strengthen the community by providing safe, affordable housing to the residents who need it.”
Bethany Glen is CPP’s second affordable housing community in Arizona. CPP’s total development investment is expected to be approximately $69 million, with a purchase price of $33.25 million and a total investment in renovations of $58,000 per unit. Construction has started and is anticipated to be completed by January 2023.
The renovations will include replacing windows, interior and exterior painting, installing new HVAC units, flooring, cabinets, countertops, appliances, lighting and plumbing.
Project funding for all the properties leveraged Low-Income Housing Tax Credits (LIHTC) and tax-exempt bonds and loans.
About Community Preservation Partners
In 2004, Community Preservation Partners was established by our parent company, WNC & Associates, a national investor in affordable housing and community renewal initiatives. Since then, CPP has successfully acquired, developed, and rehabilitated more than 11,000 affordable multifamily and senior housing units nationwide. From the very beginning, they’ve done things differently. As more than a consultant or an investor, CPP is a true partner in every sense. By joining leading nonprofits and strategic partners, they can provide essential social services to residents, support neighborhood initiatives and transform multifamily affordable housing communities. Creativity, Performance, and Purpose are their core values and embody everything they do. Together they define A Different Way to Home for their excellent employees, partners, and communities. Visit https://www.cpp-housing.com/.
