Acquisition is the company’s fourth affordable housing rehabilitation project in the San Francisco Bay Area this year
IRVINE, CALIF. (July 27, 2016) – As San Francisco Bay Area residents struggle with rising rents, Community Preservation Partners (CPP) and Jamboree Housing have closed a $53M joint venture to protect affordability for the next 55 years at the 144-unit Monte Vista Gardens apartments in San Jose, Calif., CPP announced today.
CPP will invest more than $5.5 million in the rehabilitation of the community, located at 2601 Nuestra Castillo Court in San Jose. The investment locks in a series of tax incentives that will keep 80 percent of the units at affordable levels, while the other 20 percent will remain set by the open market, which has been very bullish. Among counties with a population of at least 1 million, the San Jose metro area has seen the largest annual increase in rent (9.3 percent from 2015 to 2016), according to RealtyTrac’s 2016 Rental Affordability Analysis.
“The whole Bay Area is dealing with a housing crisis due to a lack of inventory and surging demand, but San Jose probably has it the worst,” said Seth Gellis, director of community preservation at CPP. “With the fastest increasing rents in the nation, we are proud to be able to enhance and preserve this affordable community and prevent residents from being displaced well into the future.”
Work at Monte Vista Gardens will begin in August and conclude in April 2017, and no tenants will be relocated during construction. The following is included in the rehabilitation:
- Safety and accessibility upgrades
- LED bulb installations
- New air conditioning units
- New paint
- Pool enhancements and exterior repairs
- New kitchens and bathrooms
- Energy efficiency improvements
- Renovations to office and community room
Later this year, CPP will begin discussions with tenants to determine what resident services would provide the most impact. The company has a reputation for providing tenants with first-rate amenities and support for social programs, such as computer training, recreational activities and children’s education.
Monte Vista Gardens was purchased by CPP for approximately $37 million. With rehabilitation, reserves and financing costs, the total preservation cost is about $53 million. It is the fourth affordable housing transaction CPP has made in the Bay Area this year and the seventh from the region to be added to CPP’s portfolio. The other six, which are 100 percent affordable, are:
- Courtyard Plaza, San Jose, 81 units
- Park Sunset, San Francisco, 30 units
- Northgate Terrace, Oakland, 202 units
- Franco Center, Stockton, 112 units
- Oak Center Apartments, Oakland, 77 units
- Morh 1 Apartments, Oakland, 126 units
“Keeping such a large percentage of apartments affordable in a community like Monte Vista Gardens is unusual. Most affordability ratios are the opposite – 80 percent market rate and 20 percent affordable – and we are thrilled with what we were able to accomplish with this agreement,” said Anand Kannan, president of CPP. “Monte Vista Gardens is another example of our dedication to preserving communities.”
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.