CPP to Renovate Affordable Property in Pittsburgh

CPP plans to renovate existing buildings and build a new common space. Image courtesy of CPP

Community Preservation Partners has expanded its footprint in the downtown Pittsburgh market with the acquisition of Cambridge Square Apartments. The developer plans to renovate the 204-unit community and add a new amenity building.

CPP is planning to pour more than $18.8 million into the renovation of the property, which is acquired for $16.6 million. The company’s total investment in the affordable community will total approximately $47.2 million.

Thomas Gibson, director of special projects for CPP, said in prepared remarks that the company is moving forward on the project after more than two years of planning. The project has earned support from the Pennsylvania Housing Finance Agency, which issued a bond and awarded 4 percent low-income housing tax credits, as well as KeyBank, which provided debt financing through Freddie Mac.

Major renovations planned

Cambridge Square Apartments comprises eight two-story residential buildings that were built in 1974. Units range from one-, two- and three-bedroom floorplans with all units designated as affordable. The community’s amenities include a playground, laundry rooms and 329 surface parking spots. Located at 120 Cambridge Square Drive, the community is 14 miles east of downtown Pittsburgh. The community is currently 96.6 percent occupied, according to CPP.

CPP’s plans for Cambridge Square Apartments includes reconstructing one of the 28-unit buildings that was lost to a fire earlier this year. The renovations also call for updates to accessibility throughout the community, mechanical system replacements, building envelope upgrades and energy efficiency enhancements. CPP will also renovate the units, installing new kitchen countertops, appliances and flooring, while updating bathrooms with new vanities, fixtures and shower surrounds, as well as reglazed tubs.

While the majority of the plans call for renovations, CPP will construct a new community building that will be used for resident meetings and gatherings, maintenance storage space and leasing offices. Once completed, CPP is also planning to partner with American Healthcare Group to provide tenants with supportive services.

Expanding in downtown Pittsburgh

Cambridge Square Apartments represents CPP’s second investment in Pennsylvania. The company acquired Allegheny Commons, also located in Pittsburgh, for $46.4 million in May.  More recently, CPP acquired two affordable housing communities in Santa Fe, N.M., for $41.8 million and has similar plans to invest more than $93.7 million in renovations. The company’s overall portfolio now totals more than 11,000 affordable multifamily and senior housing units across the U.S.