NAI Capital Closes $10.5 Million Apartment Community Transaction
- Apr 05, 2013
Wilmington, Calif.—Preservation Partners and Clifford Beers Housing have purchased Banning Villa Apartments, a 90-unit affordable housing community for seniors in Wilmington, Calif., for $10.5 million from VPP Banning Villas Apartments VP. The West Los Angeles office of NAI Capital represented the buyers.
Preservation Partners is an affordable housing provider that owns and operates approximately 3,000 affordable rental units. Clifford Beers Housing is a local non-profit focused on developing affordable housing for individuals and families with limited incomes, including those families that are either homeless or at risk of homelessness, and have a member living with a mental illness.
Constructed in 1976 of wood frame and stucco building materials, the property consists of 90 one-bedroom units. Among the amenities of the property are a large courtyard and clubhouse, as well as carports for every residential unit. Wilmington is a district of Los Angeles, adjacent to San Pedro and east of Long Beach. The property is easily accessed from the I-110 and I-710 Freeways.
Plans call for a complete renovation of the community, including the addition of a new roof, renovated bathrooms and new appliances throughout.
“Assets of this size and quality are always in high demand in the Los Angeles market,” Tim Steuernol, NAI Capital vice president, who represented the buyers, tells MHN. “The timing was excellent for the seller, as they were able to obtain a premium for the real estate in this tight market. The buyer was thrilled to acquire a senior housing asset of this caliber, [and has] plans to substantially rehab the property and hold it for the long term.”
The transaction’s biggest hurdle came in securing the proper financing within the time frame allowed for closing, Steuernol says. The buyers were able to source a new loan through the Golden State Acquisition Fund, which was originated by Enterprise Community Loan Fund. That allowed them to close on time.
Preservation Partners Development and Clifford Beers Housing will use the $9.4 million loan toward the purchase and rehabilitation of Banning Villa Apartments.
The loan will allow the property to remain affordable to low-income seniors for an additional 20 years. “We are pleased to have been able to preserve this asset as senior housing for the next 55 years, with the help of Clifford Beers and Enterprise,” says Jon LaLanne, partner with Preservation Partners. “The commitment we received from HUD will allow us to do approximately $50,000 per unit in capital improvements.”
Preservation Partners’ comprehensive rehabilitation plan for modernizing the property will positively enhance the lives of all building residents, Steuernol says.
“This building will be preserved as affordable housing for years to come,” he adds. “And Preservation Partners will provide superior management of the asset through the property management division.”