CPP Acquires San Jose Affordable Housing Senior Asset

Corinthian House is located in San Jose, Calif. Image courtesy of Community Preservation Partners

Community Preservation Partners has expanded its presence in the Bay Area with the acquisition of Corinthian House, a 102-unit affordable housing property for seniors in southwest San Jose, Calif., from an unidentified seller for $21 million. The affordable housing preservation developer plans to make renovations at the property for a total development investment of approximately $38 million.

CPP’s other Bay Area properties are Franco Center in Stockton, Calif.; El Rancho Verde and Lenzen Square Apartments, both in San Jose.

The property’s Housing Assistance Payment (HAP) Section 8 contract was set to expire but with CPP’s involvement the contract will be preserved for another 20 years. Partners on the project include the California Tax Credit Allocation Committee, which issued 9 percent Low-Income Housing Tax Credits. WNC & Associates, CPP’s parent company, will be providing the tax credits. Comerica Bank will provide the acquisition and rehabilitation loan and CitiBank will provide the permanent loan.

Renovations are expected to be completed by December. Renovations will be made to exteriors and interiors to address deferred maintenance issues and to bring increased accessibility, modern amenities and energy efficiency to the property that was built in 1982. The development will receive new vinyl plank flooring, cabinets and countertops, modern appliances, water-saving toilets, vanities and mirrors, and energy-smart lighting. Common area renovations will include updates to the community room, laundry rooms, salon and leasing and management office. A new fitness center will be added along with free Wi-Fi for all tenants.

Property Details

Located at 250 Budd Ave. in the Campbell neighborhood, Corinthian House consists of studio and one-bedroom apartments designated for seniors 62 years old and up earning between 30 and 60 percent of the Area Median Income or below. The neighborhood offers ample shopping and activities for the residents and is also located a half-mile from the Campbell Adult Center which offers lunch options, clubs and trips for adults 50 and over. The Winchester BART station is located a quarter-mile away and Good Samaritan Hospital, a 403-bed acute care facility, is within 2 miles of the property.

LifeSteps will offer adult education, health and wellness and skill-building classes to residents. Classes will include financial literacy, computer training and home-buyer education.

Earlier CPP Deals

CPP, a subsidiary of WNC & Associates, has acquired, developed and rehabilitated more than 15,000 affordable housing units since its inception. In December, CPP teamed with Conifer Realty to acquire Andrews Terrace, a 526-unit affordable housing community in Rochester, N.Y. The joint venture partners acquired the two-building property built in 1975 for $94.7 million and planned to make about $101 million in renovations.

Also late last year, the firm acquired Cambridge Square Apartments, a 204-unit property in Pittsburgh, for $16.6 million with plans to invest more than $18.8 million in renovations.