EL CAJON, Calif., Aug. 29, 2024 (GLOBE NEWSWIRE) -- Preservation Equity Fund Advisors, LLC (PEF Advisors), a real estate private equity group focused on preserving existing affordable housing in high-cost markets, announced their recent sale of Lexington Green, a 144-unit apartment community located in El Cajon, CA, a community 17 miles east of downtown San Diego. PEF Advisors acquired the development in July 2021. The property was originally developed in 1970 and underwent a significant rehab with new low-income housing tax credits (LIHTC) in 2007. The property is comprised of 18 two-story buildings with one-, two- and three-bedroom units and targets families with household incomes at 50%-60% of the area median household income. 76% of the units are covered by a Project-Based Section 8 contract.
PEF Advisors invested over $1.2M to address deferred maintenance in common areas and for replacement of building systems. Additionally, energy efficient retrofits were implemented, including solar panels, which resulted in savings of $30,000 per year to the common areas and approximately $85,000 of annual savings to tenants (average of $49/unit/month).
“We originally anticipated holding this property for six years,” said Ann Caruana, President & Chief Investment Officer at PEF Advisors. “However, the strong fundamentals of the market and the availability of bond allocations in California allowed an exit after just 3 years.” The property was sold to a developer which secured a bond allocation and new low-income housing tax credits which will extend the affordability period for another 55 years. Caruana stated, “This early sale provided the triple benefit of securing long-term affordability for residents, extending the useful life of the buildings, and delivering above anticipated returns to our investors.” The new owner is expecting to invest ~$60,000/unit in upgrading building systems and renovating interior units.
About Preservation Equity Fund Advisors, LLC
Preservation Equity Fund Advisors, LLC (PEF Advisors) is a women/minority-led platform which, since 2016, has focused on acquiring and preserving existing affordable housing in high-cost markets through private equity funding. PEF Advisors is an affiliate of the WNC & Associates, Inc. (WNC) family of companies with access to WNC’s more than 53 years’ experience in acquiring more than 1,700 properties representing $18 billion in affordable housing nationwide, including through tax credit and/or preservation equity strategies.
