Community Preservation Partners (CPP) has announced the acquisition and planned renovation of two developments in Albuquerque, New Mexico.
An affordable housing preservation firm, CPP has purchased Mountain View II and III, marking its first projects in the city.
Built in 1967 and 1968 respectively, Mountain View II and III are approximately four miles outside of downtown Albuquerque. They share a contiguous block and will be designated and operated as one development. In all, the Mountain View Apartments offer 241 units comprised of studios, one-, two-, and three-bedroom layouts, set in multiple two-story garden-style buildings and townhouses.
CPP’s total development investment is approximately $65.8 million, which includes the purchase price of $22.3 million and an estimated renovation cost of $95,078 per unit.
“The need to renovate the Mountain View Apartments, due to years of deferred maintenance, is compounded by a recent fire at one of the buildings making approximately 24 units uninhabitable,” said Karen Buckland, vice president at CPP. “This investment, which will preserve affordable units in the area, could not come at a better time.”
Along with the extensive work to repair the fire-damaged building and modernizing the overall community, the site work will improve Americans with Disabilities Act compliancy, energy efficiency, and security, according to the project sponsors.
Thirteen units will be designated and receive enhancements for residents with maneuverability restrictions. Additionally, there will be five units for residents with hearing impairments.
The properties’ Department of Housing and Urban Development subsidy was set to expire, but with CPP’s involvement the homes will remain affordable and prevent displacement of residents earning up to 60% of the area median income until 2054.
Project financing includes 4% low-income housing tax credits and bonds from the New Mexico Mortgage Finance Authority. R4 Capital is providing the equity financing, and KeyBank is providing the construction and debt financing through a forward under the Freddie Mac TEL (tax-exempt loan) program.
CPP has a growing presence in the state with two recent closings in Santa Fe. The firm’s investment in New Mexico consists of more than 39 communities.