WAJ Management has sold Chandler Ridge Apartments, a 228-unit partially affordable community in Raleigh, N.C., to Community Preservation Partners for $26 million. The new owners financed the acquisition with 4 percent low-income housing tax credits and bond financing.
The transaction marks CPP’s first purchase in North Carolina and the company plans to close on another property acquisition outside of Charlotte, N.C., before the year is out.
“CPP is aggressively looking to expand in markets across the U.S., with a goal to be active in 25 states in the next four years. New states we are currently considering are Hawaii, Texas, Ohio, South Carolina, Indiana and Wisconsin” Seth Gellis, senior vice president at CPP, told Multi-Housing News.
Upon taking ownership, the buyer converted Chandler Ridge Apartments into a fully affordable housing community by preserving the affordability of several units for an additional 30-year period and by converting the remaining 37 market rate units into rent-restricted apartments. The community will serve residents earning 60 percent of the area median income or below.
Entering a new market
The current acquisition mirrors CPP’s strategy when entering a new market. First step in any transaction is establishing a relationship with the local government, such as the state housing finance agency and the local city housing authority to secure tax credit equity and bond financing, Gellis also told MHN. The Housing Authority of the County of Wake provided $30.3 million in Series 2021 tax-exempt bonds for the buyer, according to public records.
Located on 18 acres at 4900 Chandler Ridge Circle, the garden-style community features one-, two- and three-bedroom apartments. The new owner plans to implement a $13.7 million rehabilitation plan focused on energy efficient interior upgrades, exterior updates along with renovations across building systems. Community amenities, such as the playground, swimming pool, laundry facility, business center along with the barbecue and picnic areas will also get a makeover.
The rehabilitation work is set to begin later this month and is expected to wrap by December 2022. Architecture firm Ebersoldt & Associates will oversee construction, while MFRG-ICON will serve as general contractor.
CPP plans to own their communities for the long-term, so as part of the acquisition process the company also directs financing to rehabilitate each property. “We listen to leaders in the resident communities and conduct surveys to determine what renovations will be of greatest value and also partner with community organizations to provide support services.” Gellis told MHN.
Supportive services offered at Chandler Ridge Apartments will focus on health care and wellness, as well as financial education, among others.
Adjacent to Wake Technical Community College’s Southern Wake Campus, Chandler Ridge Apartments is within a mile of the Ten-Ten Road retail corridor and less than 5 miles from Lake Wheeler Park. Downtown Raleigh is 11 miles northeast.