Community Preservation Partners Marks Largest Deal With Oakland Multifamily Buy
Community Preservation Partners (CPP) has acquired 203 affordable housing units in Oakland in a JV with Related Affordable.
The JV bought two multifamily properties from the same private owner: Mohr 1 and Oak Center apartments. The total cost of the transaction (including renovations, reserves and financing) is projected to be $119M.
The combined deal is the largest CPP has made since it was founded in 2004. The acquired complexes join five other Bay Area housing sites in the company’s affordable housing portfolio.
The terms include a US Department of Housing and Urban Development recapitalization that will maintain the properties as affordable housing for the next 55 years. Both projects are expected to finish by October.
Rising rents have made the Bay Area one of the most expensive in the nation, attracting affordable housing-focused companies. Oakland in particular saw double-digit rent growth last year.
“With rents skyrocketing in the Bay Area, preserving affordability is more important than ever,” CPP president Anand Kannan tells us. “By acquiring and rehabilitating the Mohr 1 and Oak Center communities, we are protecting hundreds of families from possibly losing their homes."
In Oak Center (above), the company plans to invest $5.9M for rehabilitation work not including costs for furnishings. Some of the planned enhancements include upgrading roofing, walking paths, gating and security systems. CPP also plans to renovate the interior and place an emphasis on installing energy-saving appliances. The total cost of preserving Oak Center, including reserves and financing costs is expected to be around $36M.
Mohr 1 Apartments (above), at 741 Filbert St, will receive a $11.2M investment from CPP for rehabilitation. The 126 townhouses in the community will see similar upgrades to Oak Center. Mohr 1 will have additional work for lighting, landscaping, a community basketball court and a clubhouse. Total costs with reserves and financing run about $83M.
CPP director of development acquisitions Jack Aronson tells us the exterior and interior improvements will enhance the neighborhoods. “Between the improvements inside and outside of each resident’s home and our resident services programs, we can greatly enrich the lives of people we serve through our rehabilitation projects,” he says. “The Bay Area has an enormous need for such services. We plan to pursue many more affordable housing rehabilitation and acquisition opportunities in the region.”
Oakland has seen other affordable housing transactions in recent weeks. Avanath Capital Managment purchased Oak Village, a 117-unit property.
