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6/09/15
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Community Preservation Partners LLC has acquired Northgate Terrace, a 201-unit affordable senior housing community in Oakland, in a joint venture with Related Affordable LLC for $27.5 mil, or about $137k/unit. The 11-story building is located at 550 24th St, north of Grand Ave on the east side of Northgate Ave and I-980.
The joint venture will perform a complete renovation of the existing property, originally constructed in
1969 with a HUD 202 loan. Community Preservation Partners is a subsidiary of WNC, an Irvine-based national investor in real estate and community development initiatives.
The total cost of the project, including acquisition and renovation, is expected to run approximately $47 mil to complete. Operating as Northgate Terrace Community Partners L.P., the joint venture between Community Preservation Partners and Related Affordable will provide approximately $10.5 mil in financing to help rehabilitate the property. WNC will provide more than $15 mil in additional equity via low-income housing tax credits. The remaining costs will be funded with a permanent loan from Citi Bank.
"This project required unique financing that included prepayment of the existing HUD loan under a preservation transaction, and the agency's acceptance of the revaluation of the property to market rate," said Anand Kannan, president of WNC's Community Preservation Partners, LLC. "This enabled the joint venture to secure the financing required to properly rehabilitate and maintain this community as part of the nation's desperately needed affordable housing inventory."
The property renovation will include: a new façade; seismic upgrades; general plumbing improvements; a new community room, entry, medical exam space, computer area and gym; as well as an upgrades to the building's elevators. Other amenities to be enhanced are the kitchen, controlled access systems, group lounges, television and library room, clubhouse and security. The property's 180 studio units and 21 one-bedroom units will all receive new appliances, lighting, fixtures, cabinets, countertops and more.
The building was originally constructed using a process called "foldcrete," in which precast concrete slabs and walls are folded like origami to create room blocks. It is believed to be the only building of this style in the U.S., and was patented by Delp W. Johnson of San Francisco, and William C. Harr.
WNC, founded in 1971, has acquired more than $6.7 bil of assets totaling in excess of 1,225 properties in 45 states, Washington D.C. and the U.S. Virgin Islands.Since 2000, WNC has been awarded four New Markets Tax Credit (NMTC) allocations, totaling $178 mil, and has facilitated development of 17 low-income community projects.
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