CPP Buys Palm Springs Affordable Housing Property

Community Preservation Partners has acquired Sunnyview Villa Apartments. Image courtesy of Community Preservation Partners

Community Preservation Partners has acquired Sunnyview Villa, a 44-unit affordable housing community in Palm Springs, Calif, for $11.2 million. Sunnyview Villa serves residents earning between 30 and 60 percent of the area median income.

The affordability of the community will be extended for an additional 55 years, thanks to the mission-driven developer’s investment and planned renovation. Moreover, LifeSTEPS will partner with CPP to create a health and wellness program, which will provide educational and supportive services to the community’s residents.

Completed in 1980, the property encompasses one- and two-story buildings with two- and three-bedroom floorplans. The property is at 2950 N. Indian Canyon Road, in North Palm Springs. Located near the Racquet Club West neighborhood, Sunnyview Villa is close to Interstate 10, which provides direct access to downtown Los Angeles.

Extensive improvements

CPP estimates a renovation investment of approximately $89,000 per unit. Exterior upgrades will consist of energy efficient lighting in common areas, painting work and a new roof. The apartments are set to feature Energy-Star appliances, new kitchen cabinets and countertops, energy efficient lighting and low-HOV vinyl flooring.

Sunnyview Villa’s technological upgrades will include a new computer room, video surveillance, wireless internet in each unit and transportation options. The renovation project is slated for completion by the end of the year.

CPP’s total investment in the property’s acquisition and renovation is estimated at $20.7 million.

Other partners on the project include bond issuer California Municipal Finance Authority, Red Stone Equity Partners and WNC & Associates, which will be providing 4 percent tax credit equity.

This year, CPP has purchased several communities across the U.S., with plans to upgrade each of these assets. Earlier this summer, the company expanded its affordable housing footprint in Montana with the acquisition of two properties. In spring, CPP also purchased a 200-unit affordable housing property in Newport News, Va., for $30.1 million. Plans here call for approximately $11 million in community upgrades.