OAK RIDGE and TULLAHOMA, Tenn., July 28, 2022 (GLOBE NEWSWIRE) -- CPP (Community Preservation Partners), a mission-driven affordable housing preservation developer, today announced the closing of two affordable housing projects in Oak Ridge and Tullahoma, Tennessee. The properties include McKenzie Acres, comprised of 12 two-story walk-up buildings containing a total of 100 one-, two- and three-bedroom units that are all designated at 50% of area median income (AMI). Tullahoma Village also comprises 12 two-story walk-up and townhome buildings containing a total of 88 one-, two- and three-bedroom units. All Tullahoma Village units are designated at 60% AMI.
“CPP is excited to expand our portfolio in Tennessee and help ensure these properties are safe for residents and the communities are prepared to grow in partnership with the thriving neighboring communities of Knoxville and Nashville,” said Seth Gellis, senior vice president at CPP. “The investment in these properties and communities demonstrates our commitment to affordable housing preservation across the country.”
McKenzie Acres, located in Oak Ridge, is CPP’s first property in the Knoxville MSA. The property was built in 1979 and has not had any capital investment and will require significant upgrades. The project has a total development cost of $20 million, which includes a planned total renovation cost of $6.2 million, $62,000 per unit. Construction is underway and is expected to be completed in June 2023. The purchase price was $6 million.
The planned renovations include new roofing, flooring, AC units, bathroom and kitchen appliances, windows, as well as the addition of a community room, basketball court, dog run, playground and security cameras. Rainbow Housing will provide supportive services to the residents.
Tullahoma Village was constructed in 1980 and has not received any meaningful updates since. 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 $16 million, with a purchase price of $4 million and a $5.3 million total investment in renovations, or $60,000 per unit. Construction has started and is anticipated to finish in May 2023.
The renovations will include new roofs, flooring, kitchen and bathroom appliances, a new community room, outdoor fitness area, playground, dog run, picnic area and upgraded security including security cameras. Rainbow Housing will offer online supportive services for all tenants, and CPP will provide free wi-fi access so that residents can access these services.
“The City of Tullahoma has benefited from the economic boom in Nashville, but the affordable housing in the area has not kept pace,” said Scott Fink, development manager at CPP. “This project will strengthen the Tullahoma community by providing safe, affordable housing to the residents who need it.”
Project funding for both properties leveraged Low-Income Housing Tax Credits (LIHTC), as well as 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 multi-family 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 with leading nonprofits and strategic partners, they can provide essential social services to residents, support neighborhood initiatives and transform multi-family 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/.
