With $55,000 invested in each unit, affordability is preserved for 55 years
IRVINE, CALIF. – Community Preservation Partners (CPP) has closed a $25 million transaction that will preserve affordability in a region with some of the highest rent increases in the country and bring vast improvements far above the industry standard, the affordable housing rehabilitation company announced today.
Under the agreement, CPP will invest $4.5 million in the rehabilitation of the 81-unit Courtyard Plaza Apartments, located at 2950 Story Road in San Jose, for a total of $55,000 per unit. Affordable housing rehabilitation projects usually net a per-unit investment of $25,000-30,000, according to Karen Buckland, director of community preservation for CPP.
“This project is quite extensive because it entails full interior remodeling and structural exterior improvements as well as solar panel installation, accessibility upgrades and major enhancements to the complex’s common areas,” Buckland said. “Each home will be like new.”
Work at Courtyard Plaza will begin in June and conclude in December. The following is included in the rehabilitation:
Expanded lounge areas at two pools
Remodeled community room
Remodeled manager’s office
New kitchen cabinets
New bath tubs
Full stucco replacement
Nine of the apartments will be upgraded to comply with the Americans With Disabilities Act.
The property was purchased by CPP last fall from a private developer. CPP gained site control after ensuring the seller their ability to move quickly. CPP closed on the existing tax credit property within 60 days, held the project unit the 15-year tax credit compliance period expired and recapitalized the deal on May 26, which was financed through bond purchases and tax credits from California’s Tax Credit and Debt Limit allocation committees. The construction, renovations, equipment purchases and closing costs total $10.2 million.
For the next 55 years, each of the 81 apartments must be rented for less than market rates, according to the new regulatory agreement. Additionally, the common areas will be powered by solar energy, which will help reduce utility costs for tenants.
“The San Francisco Bay area has been challenged by soaring rents that have stretched many families so thin that they are forced to leave. At CPP, we are committed to keeping these families in their homes,” said Anand Kannan, president of CPP. “The Courtyard Plaza Apartments are another example of our dedication to preserving communities.”
It joins six other Bay Area projects to bolster the company’s affordable housing portfolio in the region. Other recent local CPP projects include:
Park Sunset, San Francisco, 30 units
Northgate Terrace, Oakland, 202 units
Franco Center, Stockton, 112 units
Oak Center Apartments, Oakland, 77 units
Mohr 1 Apartments, Oakland, 126 units
About Community Preservation Partners
CPP is an affordable housing rehabilitation company that owns more than 4,000 units across the United States. Its mission is to enrich lives and strengthen neighborhoods by recapitalizing, rehabilitating and preserving aging affordable housing communities. CPP provides simple, practical solutions to complex challenges facing housing authorities, nonprofits and investors. For more information visit www.CPP-Housing.com or call Jack Aronson, Director of Development Acquisitions, at (415) 746-0666.