CPP Acquires 2 LA Affordable Communities
Acquired in separate transactions, the company is planning substantial renovation programs at both properties.
In separate transactions, Community Preservation Partners has acquired and plans to renovate two Los Angeles affordable housing communities. The communities are Normandie Villas, a 25-unit property within the city’s Adams Normandie neighborhood, and MCA III, a 20-unit community situated in the city’s South-Central neighborhood.
Located at 2633 Normandie Ave., Normandie Villas offers a single one-story garden-style building and three two-story townhome style buildings. Created to accommodate families, Normandie Villas features 15 two-bedroom and 10 three-bedroom units, two of which post-renovation will be fully handicap accessible.
CPP’s total development investment into Normandie Villas is about $20.6 million, including the $11.5 purchase price and estimated renovation costs of $165,916 per unit.
Transit-oriented Normandie Villas is located about one mile from University of Southern California and five miles from Downtown Los Angeles. The property provides residents quick, easy access to a bus stop, grocery store, public park and elementary school.
Situated at 3940 Gibraltar Ave., MCA III is a two-story property featuring 12 one-bedroom apartments and eight two-bedroom residences. CPP and LifeSTEPS will work together at the property to provide adult education, health and wellness and skill-bonding classes to its residents.
MCA III was set to have its affordability expire in 2024. However, CPP is anticipating to renew its contract with the Secton-8 Housing Assistance Payment for the next 20 years. Homes will be available to 30, 40, 50 or 60 percent of Area Median Income.
The community’s location is proximate to the coveted Baldwin Hills and Crenshaw neighborhoods. Residents enjoy convenient access to public transportation, as well as groceries and recreational activities.
CPP’s total development investment in the property is $13.1 million, made up of the $7.3 million purchase price and estimated renovation costs of about $163,000 per residence.
Planned renovations
Completed in 1983, renovations to Normandie Villas will include new shingle roofing, energy-efficient HVAC systems and gas water heaters.
Energy-efficient improvements are expected to double the community’s 10 percent energy efficiency improvement mandated by the California Tax Credit Allocation Committee. The improvements will include upgraded roof insulation, use of high-efficiency LED lighting and addition of Energy Star windows and appliances.
Completed in 1958, MCA III suffers from aging building systems and substantial deferred maintenance. The planned comprehensive renovation will include replacement of water heaters, unit heating, plumbing, electric flooring and roofing.
CPP anticipates that renovations on MCA III will complete by June of next year.
Four months ago, CPP paid $54 million to acquire a 139-unit L.A. affordable senior housing community built in the 1890s. The company implemented a renovation of the property anticipated to cost $115,000 per unit.
