|Community Preservation Partners (CPP) has acquired three multifamily housing communities located in California, New Mexico and Arizona.
One of the properties is Park Villa apartments in El Cajon, CA. The property is 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). A second property, Vista Mesa Villa in Grants, NM, includes two three-story buildings containing 100 one- and two-bedroom units, set at 60% AMI.
The third property, 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.
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 The property was built in 1959 and had outdated fixtures, requiring significant interior and exterior upgrades.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 mil. Construction is underway and is expected to be completed in December 2022. The purchase price was $9 mil.
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. 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 mil, with a purchase price of $6.5 mil and a $4.7 mil total investment in renovations, or $45k 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.
Bethany Glen is CPP’s second affordable housing community in Arizona. CPP’s total development investment is expected to be approximately $69 mil, with a purchase price of $33.25 mil and a total investment in renovations of $58k 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.