Anaheim, Calif.—In a $53.5 million joint venture with nonprofit Jamboree Housing, Community Preservation Partners announced its acquisition of Miracle Terrace Apartments, located at 225 S. Western Ave. in Anaheim, Calif., for $37.4 million. CPP purchased the asset from a private owner in a transaction syndicated by CPP’s parent company, WNC & Associates.
As part of the agreement, the Anaheim Housing Authority will help maintain rents at below-market levels for 124 of the apartments, with the remaining units being covered by new affordability restrictions that CPP has put into place. At Miracle Terrace, the affordability term was due to expire in 2019, but the AHA will now renew 40 of the apartments for an additional 15 years and residents in 84 of the existing project based apartments will receive resident-protection vouchers through AHA under the agreement made by CPP.
Of the 179 units, 40 one-bedroom apartments will be available for seniors who live at the lowest end of the low-income spectrum, 35 percent of the area median income. Eight protected studio apartments will be available for seniors at or below 50 percent AMI and the remaining studio and one-bedroom units will be available for seniors at or below 60 percent. The community is now at a 97 percent occupancy, according to Yardi Matrix.
CPP will invest $7.4 million in renovations including new air conditioning units; energy-efficient appliances; water-conservation upgrades; exterior paint and facade improvements; interior corridor paint, flooring and amenity improvements and newly installed countertops, cabinets and flooring. The company will also be partnering with Eco-Gen Energy to keep utility costs down and have the option of bringing Miracle Terrace completely off the power grid. Jamboree Housing will also be offering new services to residents including health and wellness programs, mobility and balance programs, service coordination and community events.
“Especially given the affluence of the area, we’re thrilled to be able to maintain the affordability of Miracle Terrace and keep these seniors from being priced out of their homes, which was set to happen in 2019,” Anand Kannan, president of CPP, told Multi-Housing News. “We’re looking forward to rehabilitating the property with improvements to the interiors of the apartments and common areas, as well as energy efficiency upgrades.”
Image courtesy of Community Preservation Partners