Community Preservation Partners (CPP), a mission-driven affordable housing preservation developer, today announced its acquisition of Methodist Towers in Erie, a 13-floor high-rise affordable housing complex comprising of 138 senior units (55+), 57 of which receive subsidy under a Section-8 HAP contract. The renovation will be a tenant in-place rehabilitation with minimal displacement for residents. CPP received an issuance of tax-exempt bonds and Low-Income Housing Tax Credits (LIHTCs) from the Pennsylvania Housing Finance Agency (PHFA) with construction and permanent loans from Citibank as well as equity raised from the sale of LIHTCs from PNC Bank, N.A. to finance the property acquisition and rehabilitation. The affordability commitments and investment made in Methodist Towers will preserve its affordable housing designation for future decades.
“CPP is excited to partner with Rochester’s Cornerstone Group on another exciting Preservation project. We are planning a meaningful rehab that will make current and future residents proud to call Methodist Towers home,” said Seth Gellis, senior vice president at CPP. “With this project, CPP will deepen and lengthen the affordability of the property including to those making no more than 20%, 50% and 60% of AMI.”
Methodist Towers is in the heart of downtown Erie, within view of the Lake Erie waterfront and surrounded by Gannon University, as well as several medical centers including The University of Pennsylvania Medical Center Hamot campus.
“While the property was built and lovingly maintained by the First Methodist Church of Erie, it suffered from severe deferred maintenance,” said John Fraser, director of development at CPP. “Major building systems require upgrading and replacement, including the roof, elevators and HVAC equipment. The property was built in 1973, has never been through a meaningful rehab, and as such, unit and common area finishes need upgrades and modernization.”
CPP will invest more than $20 million to acquire and rehabilitate the complex, with renovations to include accessibility upgrades, parking lot repair, decking and railing replacement of the community sundeck, flooring upgrades, an outdoor dog run, new maintenance shed and improvements to the community, dining, music, and billiards rooms. For the units, enhancements will feature new unit entry doors, kitchen cabinets, vanity cabinets, quartz countertops in kitchens and bathrooms, paint, toilets, energy-efficient appliances, window blinds, sinks, faucets, and other items. CPP’s service coordinator will provide adult education programs including smoking cessation, computer training, tax preparation guidance, English classes, educational workshops, fraud prevention classes, literacy programs, health and wellness, financial literacy, socials, exercise, art and COVID education.
About Community Preservation Partners
Since its founding in 2004, Community Preservation Partners (CPP), an affordable housing rehabilitation company, has invested more than $2.6 billion into neighborhoods across the United States, keeping housing costs affordable for thousands of seniors, families and individuals. Having developed more than 12,500 low-income housing units, and positively changing the lives of thousands of low-income residents, the award-winning firm continues to expand nationally with headquarters in Irvine, California and Reston, Virginia. With its creative mindset and unwavering vision, CPP Housing proposes big, bold and better solutions that build community and serve the greater good. Creativity. Performance. Purpose. A different way to home. For more information, visit www.cpp-housing.com and follow us on LinkedIn.
Community Preservation Partners (CPP), a mission-driven affordable housing preservation developer, today announced its acquisition of the Woodland Hills Apartments, 14 garden-style buildings on 19 acres with 176 units, which receive subsidy under a Section-8 HAP contract. Located at 330 Highland Avenue in Torrington, Conn., the units are income-restricted to family households at 50% of area median income (AMI) through the Low Income Housing Tax Credit (LIHTC) program.
The 10-month renovation will be a tenant in-place rehabilitation with minimal displacement for residents. CPP secured tax-exempt bond financing as well as an allocation of LIHTC from the Connecticut Housing Finance Agency (CHFA) in order to finance the acquisition and planned renovations for the property. CPP has committed to preserving the property’s affordable housing designation for future decades.
“CPP has an additional community in Connecticut, Fairbank Apartments, which is about 50 miles south of Woodland Hills, so this project not only adds to our count of preserved affordable units in Connecticut but also ensures Woodland Hills is well-positioned physically and financially for its current and future residents,” said Seth Gellis, senior vice president at CPP. “With this transaction, CPP has committed to deepening and furthering the affordability of Woodland Hills.”
The Woodland Hills community is located 27 miles west of Hartford in the Northwest Portion of Connecticut. It is a suburban to rural location near the Greater Hartford MSA.
“While the property was very well maintained by the previous owner, it had been 20 years since its last major rehab,” said John Fraser, director of development at CPP. “As a result, building system upgrades, roofing, siding, windows and finishes were in need of rehabilitation. It was originally built in 1973 with a LIHTC renovation in 2001.”
CPP will invest nearly $40 million to acquire and rehabilitate the complex, with renovations to include several energy efficiency and accessibility upgrades, newsiding, roofing and windows as well as parking lot repairs, improved site accessibility and improvements to the community room and other common spaces. Unit upgrades include new kitchen cabinets and quartz countertops, new energy-star appliances and plumbing fixtures. Units will also receive new flooring, be fully painted with complete renovation of bathrooms. CPP’s financing plan includes a resident service coordinator who will provide a number of adult education programs including financial literacy, computer training, tax preparation guidance, English classes, educational workshops, fraud prevention classes, literacy programs, health and wellness, smoking cessation, social activities, exercise, art classes and COVID education.
About Community Preservation Partners
Since its founding in 2004, Community Preservation Partners (CPP), an affordable housing rehabilitation company, has invested more than $2.6 billion into neighborhoods across the United States, keeping housing costs affordable for thousands of seniors, families and individuals. Having developed more than 12,500 low-income housing units, and positively changing the lives of thousands of low-income residents, the award-winning firm continues to expand nationally with headquarters in Irvine, California and Reston, Virginia. With its creative mindset and unwavering vision, CPP Housing proposes big, bold and better solutions that build community and serve the greater good. Creativity. Performance. Purpose. A different way to home. For more information, visit www.cpp-housing.com and follow us on LinkedIn.
Community Preservation Partners (CPP), a mission-driven affordable housing preservation developer, today announced its acquisition of the Smith-Beretania Apartments in Honolulu, a 22-floor high-rise affordable housing complex that houses 164 one- and two-bedroom units, all of which receive subsidy under a Section-8 HAP contract. CPP partnered with local lenders, BlackSand Capital, a Hawaii real estate private equity firm, and Bank of Hawaii to finance the property acquisition, in addition to working with Hawaii affordable housing specialist Ahe Group. Now under CPP ownership, future renovations to the Smith-Beretania Apartments will be financed through the low-income housing tax credit program, which will preserve its affordable housing designation for future decades.
“At CPP, we believe that working with local community partners is essential in bringing about affordable housing projects that make the residents and community proud,” said Anand Kannan, president at CPP. “By working closely with BlackSand Capital, Bank of Hawaii and Ahe Group, we were able to execute the deal efficiently and preserve affordable housing for more than 300 residents in a high-cost market. We are looking forward to providing a modern renovation, enhancing social services and building a sense of community for the residents that will last for years to come.”
“CPP didn’t assume they knew our local community. Instead, they paired their extensive expertise in affordable housing with our intimate knowledge of and commitment to Hawaii,” said B.J. Kobayashi, chairman and CEO at BlackSand Capital. “Preserving existing affordable housing in high-cost markets is very important to maintaining communities and ensuring that people have access to adequate and affordable housing; BlackSand Capital is proud to be part of this much-needed affordable housing effort right in our own backyard.”
There is an urgent need for preserving Hawaii’s affordable housing inventory, especially given the median asking rent on Oahu has risen to $2,100, up from $1,700 within the last year, with Honolulu specifically seeing a 3.9% rise in rent. Many families spend more than 30% of their household income on housing, and with the increasing cost of food and energy, some 10% to 14% of Oahu households are late on rent each month, according to U.S. census surveys as reported by the University of Hawaii Economic Research Organization. [i]
CPP will work with Hawaii-based business partners to invest nearly $10 million to rehabilitate the complex, with renovations to include exterior paint, unit turns, energy efficiency improvements, accessibility upgrades and site amenity updates. In addition to the 164 units of affordable housing, the half-acre lot offers a community room, onsite management, laundry facilities, controlled access entry and dedicated parking in the adjacent parking structure. Additionally, the site provides access to a public park with a playground, basketball court, pet parkand open green space.
About Community Preservation Partners
Since its founding in 2004, Community Preservation Partners (CPP), an affordable housing rehabilitation company, has invested more than $2.6 billion into neighborhoods across the United States, keeping housing costs affordable for thousands of seniors, families and individuals. Having developed more than 12,500 low-income housing units, and positively changing the lives of thousands of low-income residents, the award-winning firm continues to expand nationally with headquarters in Irvine, California and Reston, Virginia. With its creative mindset and unwavering vision, CPP Housing proposes big, bold and better solutions that build community and serve the greater good. Creativity. Performance. Purpose. A different way to home. For more information, visit www.cpp-housing.com and follow us on LinkedIn.
About BlackSand Capital
BlackSand Capital is a Hawai‘i specialist private equity firm distinguished by its integrity, creativity, and intimate knowledge of and commitment to the Hawai‘i market. It stands out as the only Hawai‘i-focused real estate private equity firm.
BlackSand Capital’s advantage is its focus on the local community, which is also reflected in the company. BlackSand Capital is a diverse and inclusive minority-led company led by women and men who are committed to these principles. All of BlackSand Capital’s employees are part of local families and have strong ties to Hawai‘i.
BlackSand Capital’s deep foundation in Hawai‘i rises from a multi-generational family legacy in the Hawai‘i real estate and construction industries. The relationships created by decades of professional partnerships refine the firm’s acute understanding of real estate fundamentals and underpin its ethical responsibility to the community. These enduring relationships along with the diversity and depth of experiences allow BlackSand Capital to capture rare opportunities often not presented in the market.
BlackSandCapital and its principals have overseen the investment of approximately $5 billion in Hawai‘i properties, including investments in workforce housing, hotels, residential condominiums, and retail, office and industrial buildings. For more information, visit www.blacksandcapital.com
[i] Honolulu Civil Beat -- https://www.civilbeat.org/2021/09/hawaiis-high-cost-of-living-just-keeps-getting-higher/
Community Preservation Partners (CPP), one of the nation’s most active affordable housing preservation developers, today announced completed renovations on three family-focused communities in Arizona: Buckeye Villa (Buckeye), Morningside Villa (Phoenix) and Tempe Villa (Tempe). CPP acquired the HUD Section 8 properties in February for $30 million, bringing them into the low-income housing tax credit (LIHTC) program and deepening the affordability for another 20 years.
“Everyone has the fundamental right to quality and affordable housing, and the three Arizona projects showcase CPP’s dedication to preservation work that creates a more sustainable future,” said Anand Kannan, president at CPP. “By engaging with new local partners, we were able to provide high-quality renovations that truly matter to the residents, while safeguarding rents and providing stability for families.”
At $51 million, the total development cost included extensive renovations. All 170 units across the three properties received new stainless-steel appliances, cabinets, flooring, quartz kitchen counters and bath vanities (including sinks and faucets), LED light fixtures, windows and cordless blinds. On the exterior, CPP installed new roofs, benches and bike racks, and refreshed the exterior paint and landscaping. CPP also upgraded overall site accessibility including accessible laundry equipment.
CPP minimized the impact on residents by completing construction on each of the three properties in just three months. Additionally, the firm provided existing residents access to moving companies, hotel accommodations and meal stipends during construction. Committed to investing in residents for the long-term, CPP is partnering with Rainbow Housing to provide support services starting in January 2022, including financial literacy, employment readiness, health/nutrition and other programs to help elevate the community.
CPP worked with like-minded partners including the Foundation for Affordable Housing (non-profit partner and managing general partner), Greystone (lender and broker), WNC (equity investor), Arizona Department of Housing (tax credit agency), Ware Malcomb (architect), MFRG-ICON (general contractor), Step Builder, LLC (local counsel and consultant) and MEB Management (property manager). The financing included a Freddie Mac Tax-Exempt Loan from Greystone, and Freddie Mac also invested equity through WNC.
CPP continues its aggressive growth initiative to expand its footprint across the country. Communities recently closed in the U.S. have led the company to deepen the affordability of neighborhoods across Colorado, Utah, Montana, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Tennessee, North Carolina, Connecticut and Virginia, in addition to its long history of providing affordable housing solutions across the state of California.
Community Preservation Partners (CPP), one of the nation’s most active affordable housing preservation developers, today announced the appointment of Belinda Oakes as chief financial officer. Oakes will be responsible for the development, oversight and maintenance of financial policies and accounting systems and functions, ensuring proper financial controls are in place. Working closely with various divisions throughout the company, she will provide strategic direction to support CPP’s plans to grow its acquisition and development pipeline across the U.S.
“Belinda has significant experience and is an industry leader specialized in affordable housing finance,” said Anand Kannan, president of CPP. “She brings an unmatched level of sophistication and expertise to our accounting and finance team that will serve as the backbone to the tremendous growth we are anticipating at CPP over the next several years. We look forward to being led by the best in the business during this next chapter.”
As part of the executive leadership team, Oakes will lead the controller function and oversee accounting functions including business planning and financial forecasts, in addition to sharing in the oversight of housing acquisition and re-syndication activities. She will work collaboratively with the asset management, development and construction management teams to elevate deals, analyze potential capital transactions, provide long-term goals and assist with forecasting. Additionally, she will foster banking, legal and other strategic relationships to further the growth potential of CPP.
“Having been part of the industry for more than 20 years, I understand the importance of affordable housing preservation,” said Oakes. “I have always admired CPP for their ability to get deals done and prowess to execute on their purpose of preserving affordable housing. I am excited to join an organization whose goals are aligned with my professional experience and personal passion for company culture and vision.”
Prior to joining CPP, Oakes spent more than 19 years at Highridge Costa Companies, in a series of roles, most recently as vice president accounting and taxation. Earlier in her career she spent time at Novogradac & Company LLP, Oracle and Arthur Andersen. She volunteers as the treasurer and CFO of the Hermosa Beach Education Foundation. She received her Bachelor of Science in accounting from Golden Gate University and is a certified public accountant. Oakes resides in Hermosa Beach, California with her husband and son.
Community Preservation Partners (CPP), one of the nation’s most active affordable housing preservation developers, today announced the acquisition of Chandler Ridge Apartments, a 228-unit mixed-income community in Raleigh, North Carolina for $26 million. Purchased with 4% low-income tax credit equity, the deal preserves affordability for those earning 60% AMI or lower for an additional 30 years, while also extending affordability to 37 formerly market-rate units. Located at 4900 Chandler Ridge Circle, the property marks the company’s entry into North Carolina with plans to close on another property before the end of the year.
“As the second-fastest growing metro area in the U.S., Raleigh’s housing market is facing enormous pressure with few affordable options for renters, especially low-income families,” said Seth Gellis, senior vice president of CPP East. “By acquiring Chandler Ridge Apartments, we are able to preserve and extend the extremely scarce resource of affordable housing for more than 700 residents, while providing a meaningful renovation that will bring a new sense of pride to the community.”
Sitting on 18 acres, Chandler Ridge Apartments consists of 19 three-story garden-style buildings with 16 one-bedroom, 152 two-bedroom and 60 three-bedroom units. CPP is investing $60,000 per unit in construction renovations, including the modernization of building systems, secured access, new roofing and an upgrade to the exterior façade. Interior units will receive new Energy-star refrigerators, WaterSense toilets, electric ranges with hoods, dishwashers, garbage disposals and washer/dryer hookups, plus new flooring, cabinets, sinks and granite countertops. Upgrades will be made to the community amenities, including new playground equipment, a covered bus-stop area for kids, a revitalized swimming pool, laundry facility, community room, business center and barbecue/picnic areas.
Construction begins November 2021 and is expected to complete in December 2022. CPP also will provide comprehensive services to enhance the wellbeing of residents, including educational programs for children and adults, health care resources, career readiness classes, financial resource management and community building activities.
“Being able to execute this deal over the course of the pandemic is testament to the creativity and commitment of our team and partners to preserve affordable housing and help address America’s housing shortage,” said John Fraser, director of developmentat CPP. “As long-term owners of our communities, we look forward to being good stewards of this community and expanding our presence in the state.”
CPP financed the development with tax credit equity provided by PNC Bank and a loan from Redstone Tax-Exempt Funding with bonds issued by Wake County. Additional partners include general contractor MFRG-ICON and architect Ebersoldt & Associates.
CPP continues its aggressive growth initiative to expand its footprint across the country. Communities recently closed in the U.S. have led the company to deepen the affordability of neighborhoods across Colorado, Connecticut, Montana, North Carolina, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Tennessee, Utah and Virginia, in addition to its long history of providing affordable housing solutions across the state of California.
Community Preservation Partners (CPP Housing), a national affordable housing developer committed to creativity, performance and purpose, today announced the closing of six rural communities in Central New Mexico. This marks the final installment in a total grouping of 654 units in 20 properties across 10 counties in the state that began in 2019. CPP serves as the fee developer for J.L. Gray Company, who will own and operate the properties.
Purchased for $7.3 million with a 4% tax credit equity investment of $8 million, the central portfolio comprises 218 units across four family and two senior properties in the cities of Las Vegas, Portales, Artesia, Belen and Ruidoso Downs. Affordability for residents earning less than 60% AMI will be extended for another 35 years.
“In New Mexico, it is extraordinarily difficult for affordable housing communities in rural areas to secure the financing they need to address maintenance and rehabilitation,” said Anand Kannan, president at CPP. “With our experience in rural development, CPP was able to arrange the smaller communities into portfolios that would meet both the mortgage finance authority and the rural development requirements to make a reinvestment possible.”
CPP is overseeing the $32,000 per unit renovation, which includes energy efficient improvements such as new windows, interior/exterior lighting and fully upgraded kitchens and appliances. Common rooms and offices will be upgraded and outdoor playgrounds and gathering areas added. Exterior improvements include new roofs, metal staircases and paint, and accessibility will be addressed throughout the properties. Construction is expected to complete in August 2022.
“CPP navigated the complex and challenging process of gaining approvals through the state and county offices to close on the largest 4% bond deal in the state of New Mexico,” said Bobby Griffith, CFO/principal of J.L. Gray Company. “Thanks to their expertise and tenacity over the past three years, we are able to preserve more than 650 homes for families and seniors in these hard-to-reach areas.”
Financing partners for the central portfolio include Bonneville, who is providing a 538 USDA guaranteed loan, bond underwriter Stifle and New Mexico MFA, bond issuer. USDA Rural Development is subordinating the existing 515 loans.
CPP continues its aggressive growth initiative to preserve affordable housing communities across the country. Communities recently closed in the U.S. have led the company to deepen the affordability of neighborhoods across Colorado, Utah, Montana, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Tennessee, Connecticut and Virginia, in addition to its long history of providing affordable housing solutions across the state of California.
Community Preservation Partners (CPP Housing), one of the nation’s most active preservation developers, today announced its brand relaunch, including a new logo, messaging platform, visual identity and revamped website. Positioned with the new tagline, “Creativity. Performance. Purpose. A Different Way to Home.,” the new branding underscores CPP’s mission of revitalizing, rehabilitating and preserving affordable housing communities across the U.S. through big, bold and better solutions that build community and serve the greater good, so residents have a place to call home. The refreshed CPP brand is expressed in a new anthem video and is reflected across all internal and external properties, including the newly designed cpp-housing.com website, which features CPP’s revamped visual identity and delivers a more intuitive, simplified navigation experience for visitors.
“From the beginning, CPP has employed a distinct approach to housing preservation, serving as a true partner in every sense and joining with leading nonprofits and strategic partners to provide essential social services to residents, support neighborhood initiatives and transform multifamily affordable housing communities,” said Anand Kannan, president, CPP.“The new brand positioning of Creativity, Performance, and Purpose reflects CPP’s core values and embodies everything the company does together these values define A Different Way To Home for employees, partners and communities.”
CPP’s refreshed brand coincides with the firm’s significant growth over the last 17 years. In 2004, CPP was formed by WNC & Associates as its development arm to promote the preservation of low-income housing and to assist existing owners and general partners with recapitalizing and revitalizing their affordable housing portfolios. In under 10 years, the firm has experienced 450% growth in its overall total portfolio, which includes more than 11,000 low-income housing units across the United States to-date. In 2018, the firm launched a new business division - CPP East -and expanded its footprint nationwide to deepen affordability for communities in Montana, New Jersey, New York, Pennsylvania, Tennessee, Connecticut and Virginia. As a result, more than 6,000 individuals across the East Coast have received brand-new upgraded apartments, exterior renovations, community amenities, linkage to vital programs and resources and more.
National affordable housing authority Community Preservation Partners has hired two affordable housing specialists, Tom Gibson and Michael Anderson, to support the growth of its East Coast division and the company’s efforts to obtain and preserve affordable communities across the United States.
Gibson joins the firm as senior development manager and Anderson joins as senior acquisitions associate. Gibson will be responsible for assembling and managing all external team members across various stages of development, including financiers, architects, designers, engineers and contractors. Anderson will be responsible for identifying, analyzing and structuring the acquisition of affordable housing opportunities to grow CPP’s investment portfolio, expanding the company’s footprint east of the Rocky Mountains.
CPP East’s portfolio currently includes $450 million in investments toward 2,000 affordable housing units across 13 communities in eight states.
Source: Connect CRE