SAN FRANCISCO—Vitus Group announced the acquisition and planned $5 million renovation of Crescent Manor Apartments, an 86-year-old former hotel in the city’s upper Tenderloin district.
Home to low-income seniors, the property will undergo extensive seismic strengthening and electrical and plumbing upgrades. Vitus Group also plans to replace the gas boilers and install modern kitchenettes in each apartment.
All of the units will remain affordable, with 20 percent of the apartments reserved for households earning no more than 50 percent of the area median income (AMI) and 80 percent reserved for those earning more than 60 percent of the AMI.
“Most important, no tenants will be relocated off-site during the construction phase, and all of the in-place residents are expected to qualify under the affordability restriction of the existing federal Housing Assistance Payment (HAP) contract,” said Stephen Whyte, managing director of Vitus Group.
The total development cost is about $15 million.
Vitus Group acquired the property using tax-exempt bonds through the California Debt Limit Allocation Committee and 4 percent low-income housing tax credits from the California Tax Credit Allocation Committee. The credits were purchased by Boston Capital, and the bonds were insured through the Department of Housing and Urban Development’s 221(d)(4) program.
The existing federal HAP contract was renewed for 20 years.
Vitus Group officials noted that they received assistance from the Mayor’s Office of Housing and the Department of Housing and Urban Development’s San Francisco office.
“Crescent Manor was constructed in 1913 as the Hotel Senate, initially offering overnight accommodations for professional sports teams visiting San Francisco,” said Sara A. Fay, Vitus director. “The most unique attributes of the building are its hand-painted athletics murals and intricate woodwork and moldings dating back to its opening. A solid marble staircase connects the lobby with a large lower-level room that will be equipped with computer stations and utilized for resident services and community gatherings.”
The city’s historic district regulations will require maintaining the building’s exterior and interior lobby to its original appearance.
Vitus Group was founded in 1993 as Pacific Housing Advisors, a consulting practice assisting for-profit and nonprofit affordable housing developers. It has developed and owns more than 5,000 residential units in more than 60 properties in 13 states.