CPP Buys 3 Affordable Communities for $49M
All three properties, located in California, New Mexico and Arizona, are being renovated.
Community Preservation Partners has acquired three affordable communities in California, New Mexico and Arizona, for a total of $48.8 million. The company plans to rejuvenate all three properties. The assets are the $9 million, 38-unit Park Villa in El Cajon, Calif.; the $6.5 million, 100-unit Vista Mesa Villa in Grants, N.M.; and the $33.3 million, 150-unit Bethany Glen in Glendale, Ariz. LIHTC, as well as tax-exempt bonds and loans, were used for all three purchases.
Existing affordable communities, refreshed
The two-story Park Villa is CPP’s sixth California purchase this year. The property’s studios, one- and two-bedroom units are set aside for individuals earning 30 to 60 percent of the area median income. The community was built in 1959 and required significant upgrades. The total development cost is roughly $18 million, as it includes new windows, heating and cooling units, flooring, cabinets, countertops, lighting and plumbing. The existing pool will be filled in and replaced with a gathering area. The rejuvenation is expected to complete in December 2022.
Vista Mesa Villa is the third property CPP purchased from JL Gray in New Mexico. The total development cost is expected at roughly $17 million, with $4.7 million being invested in renovations. The community’s one- and two-bedroom units target individuals earning 60 percent of the area median income. CPP has started construction and is slated to convert five units to be ADA accessible, along with all amenities. Other upgrades include new floors, counters, cabinets, doors and windows, as well as repairs to the roofing, plumbing and electrical systems. The community will be completed in the spring of 2023.
CPP’s second affordable property in Arizona, Bethany Glen, has a total development investment of $69 million. Renovations at this community include new windows, repainting, new HVAC units, flooring, lighting and plumbing. Construction is expected to be complete by January 2023.
Active in other markets as well, last month CPP acquired the 100-unit McKenzie Acres in Oak Ridge, Tenn., and the 88-unit Tullahoma Village in Tullahoma, Tenn., for a combined $10 million. The two affordable communities are set aside for residents earning 50 and 60 percent, respectively, of the area median income.