Community Preservation Partners has purchased 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 reserved for residents earning 50 and 60 percent, respectively, of the area median income.
The new owner plans to thoroughly renovate both properties, while Rainbow Housing will provide supportive services for residents. Including acquisition and renovation costs, the company’s overall investment in the two assets totals $36 million.
McKenzie Acres currently has one-, two- and three-bedroom units ranging from 400 to 625 square feet, according to Yardi Matrix data. A total of 82 parking spaces are also available. Planned renovations include new roofing, flooring, AC units, bathroom and kitchen appliances and windows. New planned amenities are slated to include a community room, basketball court, dog run and playground. Tullahoma Village also encompasses one-, two- and three-bedroom units.
Breathing new life into rare, affordable assets
Built in 1979 and located near Knoxville, McKenzie Acres has never been significantly renovated until now. The new owner set aside $6.2 million for the renovation of the property. Construction is already underway and the upgraded community is slated to come online in June 2023.
Built in 1980, Tullahoma Village is one of the few affordable communities in the area and also hasn’t been significantly renovated. CPP earmarked $5.3 million for upgrades. Construction has begun and is planned to wrap up by May 2023.
CPP’s planned upgrades include new roofs, flooring, kitchen and bathroom appliances. Future community amenities are slated to include a new community room, outdoor fitness area, playground, dog run and picnic area. In Tullahoma Village’s case, Rainbow Housing will offer online supportive services.
Active in other markets as well, CPP also purchased, in April, the 138-unit affordable senior housing community Methodist Towers in Erie, Pa. The company also unveiled plans to rehabilitate this asset, which would bring the total investment to more than $20 million.