CPP Pays $54M for LA Affordable Senior Community
The new owner plans to renovate the historic property.
Community Preservation Partners has purchased Green Hotel Apartments, a 139-unit affordable senior housing community in downtown Pasadena, Calif., for $54 million.
The new owner plans to renovate the property, with the total purchase price and projected future investment estimated at $100 million. Per unit renovation cost is estimated at $115,000.
Partners involved in the project include the California Tax Credit Allocation Committee and California Debt Limit Allocation Committee—which issued 4 percent tax credits and bonds. California Municipal Finance Authority, U.S. Department of Housing and Urban Development, WNC and Associates, Citibank N.A., California Bank and Trust, Belveron and Goldrich Kest were also part of the development team.
The fully affordable and age-restricted community serves seniors earning between 30 and 60 percent of the area median income. At the time of the transaction, the community was fully occupied.
The property’s affordability, previously set to expire in July 2035, will be extended and deepened. The agreement includes a 20-year renewal under a new Section 8 Housing Assistance Payment contract and a 55-year extension through the upcoming CA Tax Credit Regulatory Agreement, which will start post-renovation.
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Located at 50 E. Green St., Green Hotel Apartments is within Los Angeles’ Old Pasadena neighborhood. The property is near Interstate 210, which allows easy access across the Los Angeles metropolitan area.
Built in the 1890s, the seven-story building incorporates studios and one-bedroom floorplans ranging between 550 and 645 square feet. Common-area amenities include a clubhouse, laundry facilities, controlled access and approximately 60 parking spaces.
A comprehensive preservation
Listed on the National Register of Historic Places and designated as a Pasadena Historic Monument, the property will undergo renovation to modernize its systems while carefully restoring the exterior to maintain its original architectural integrity.
CPP’s renovation plans encompass restoring the building envelope, installing new flooring, countertops, appliances, lighting and Wi-Fi throughout the units. ADA units and paths will be upgraded for accessibility.
The affordable housing preservation developer will create a community space featuring a theater, conference rooms, a business center, a multipurpose room and a library. Windows and air conditioning systems will be replaced. Additionally, through a partnership with Project Access, Green Hotel Apartments will feature on-site health, education and employment services.
The acquisition of Green Hotel Apartments marks CPP’s 15th community in the Greater Los Angeles Area and its 41st in California. CPP recently expanded its presence in the Bay Area with the acquisition of a 102-unit affordable housing property for seniors in southwest San Jose, Calif. The company plans to make renovations at the property for a total development investment of approximately $38 million.
At the beginning of the year, a joint venture between CPP and Conifer Realty announced the rehabilitation of a 526-unit affordable housing community in Rochester, N.Y. The estimated $335 million project includes renovations valued at $101 million.
