CPP (Community Preservation Partners), a mission-driven affordable housing preservation developer, and WNC & Associates (WNC), a family-owned business known as both a pioneer and leader in the affordable housing industry, have announced the acquisition and planned renovation of Euclid Villas in El Centro, Calif.. The acquisition is in partnership with Bettencourt Properties, Inc. and The Beneficial Housing Foundation.  

Built in 1982, Euclid Villas is located at 1735 W. Euclid Ave. A, and is a 42-unit family property Comprised of five two-story walk-up buildings, the property offers two- and three-bedroom layouts. CPP’s total development investment is approximately $14,850,000, which includes the purchase price of $7,250,000 and an estimated per unit renovation cost of $81,200.

“The need for affordable housing is greater than ever. Since 2000, median rent has increased 38%, while median renter household income has only increased by 7%,” said Karen Buckland, Vice President, Development at CPP. “CPP is proud to partner with Bettencourt Properties, Inc. and The Beneficial Housing Foundation to revitalize Euclid Villas and ensure that it remains affordable for current and future residents.”

The total site renovation will address years of deferred maintenance and will bring modernization, increased accessibility, and energy efficiency to the community. Euclid Villas will receive extensive improvements targeting energy efficiency, such as new HVAC units, updated energy-efficient appliances in each unit, new water heaters, and LED lights and fixtures. Units will also receive new toilets, vanities and mirrors, and vinyl plank flooring throughout. Additionally, 5% of units will be upgraded to meet ADA compliance.  

“WNC is proud to partner with CPP on another affordable housing project,” said Anil Advani, Executive Vice President of Originations and Finance at WNC. “We look forward to seeing the positive impact that these homes have in the community.”

Common area upgrades will include roof and skylight replacement, along with upgrading all windows to dual pane. Exteriors will receive new paint, exterior LED lighting upgrades, and stair and railing work. Other community upgrades include the construction of a new community and office building, new community signage, parking lot repair, resealing and restriping, and the installation of a new playground.  

“When addressing affordable housing needs in communities, it is important to look beyond the physical needs of the property. The upgrades at Euclid Villas are aimed at addressing comprehensive resident needs, including community-making and support services,” said Ron Bettencourt, President at Bettencourt Properties, Inc.  

Additionally, Euclid Villas residents will be able to participate in adult education, health and wellness, and skill-building classes and services provided by LifeSteps. Classes include financial literacy, computer training, home-buyer education, GED, resume-building, and art and parenting education, among others. Health and wellness services include crisis intervention, counseling and emotional support, eviction prevention, and physical and mental health assessments, among others.  

“Shelter is a basic need that is becoming increasingly unaffordable in California,” said Kimberley McClintock, CEO at The Beneficial Housing Foundation. “Through the preservation of Euclid Villas, we will provide much needed affordable housing in El Centro.”

The property’s Housing Assistance Payment (HAP) Section 8 contract was set to expire, but with CPP’s involvement, the contract will be preserved for another 20 years. Additionally, the property encumbered a new Land Use Restriction Agreement (LURA). As a result, the homes will now remain affordable and prevent displacement of residents earning 60% of AMI or less for 55 years.

Renovations are expected to be completed in December 2024. Partners on the project include the California Tax Credit Allocation Committee (CTCAC), who issued 9% low-income housing tax credits; California Bank and Trust will serve as the lender; and WNC & Associates provided equity financing.

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Conifer Realty, LLC (Conifer), a nationally ranked, full-service real estate company specializing in the development, construction, management, and ownership of high-quality, affordable housing communities, and Community Preservation Partners (CPP), a mission-driven affordable housing preservation developer, have announced the planned renovation of Andrews Terrace, an iconic 526-apartment building complex on Rochester’s waterfront for senior (62+) and disabled residents (and their families). This is the second joint community investment for Conifer and CPP in Rochester, following Keeler Park, which was purchased in October 2022.

Built in 1975, and located at 125 St. Paul Street, Andrews Terrace consists of two 19- to 22-story elevator-served residential buildings containing 526 studio, one-, and two-bedroom apartments. The buildings are connected fully on the first floor, with elevated outdoor walkways throughout. In recent years, the development has faced capital repair and maintenance challenges beyond what the operating budget could cover. In response to this, Andrews Terrace will receive extensive renovations estimated at $101 million, with a total project investment of approximately $335 million.

KeyBank Community Development Lending and Investment (CDLI) in partnership with the Urban Investment Group (UIG) within Goldman Sachs Asset Management, invested $135.6 million of 4% Federal LIHTC Equity and provided a $200 million construction loan. Additionally, KeyBank Commercial Mortgage Group closed $73.1 million Fannie MTEB and KeyBanc Capital Markets underwrote $163 million of tax-exempt bonds for this project. Federal and State Historic Tax Credit equity of $37.2 million will be provided by Chase Community Equity.

"We are excited to partner with Conifer Realty and Community Preservation Partners to revitalize Andrews Terrace, which provides a critical supply of affordable housing to Downtown Rochester. Our investment will help existing and new residents access safe, affordable housing and critical on-site services. We look forward to the lasting impact on the community of this next chapter in Andrews Terrace’s nearly 50-year history,” said Scott Maxfield, a Managing Director in the Urban Investment Group within Goldman Sachs Asset Management.

“KeyBank has had a steadfast commitment helping the clients and communities we serve thrive,” said Rob Likes, National Manager of KeyBank’s CDLI team. “We are deeply committed to helping underserved populations and are proud to partner with Conifer Realty and Community Preservation Partners to renovate, safe and decent affordable housing for seniors and disabled residents.”

Preservation of this unique 557,602 square-foot downtown development, designed in the “brutalist” architectural style, will complement Rochester’s ROC the Riverway Program, a unified plan which includes dozens of transformational projects along the Genesee River.

"We are thrilled to partner with Community Preservation Partners on the revitalization of Andrews Terrace, a cherished affordable housing community here in our hometown,” said Jason Carroll, Senior Vice President of Acquisitions & Development at Conifer. “This collaboration exemplifies our commitment to providing quality affordable housing and fostering sustainable neighborhoods that enhance the Rochester community. Together with CPP, we look forward to preserving the legacy of Andrews Terrace and creating an even brighter future for its residents."

All apartments will receive considerable kitchen upgrades including new countertops, painting, new appliances, fixtures, and cabinets. Bathrooms will also be refurbished with the installation of new fixtures, vanity, and wainscotting. Once completed, 5% of the community’s apartments will be brought into ADA compliance.

Common areas, including the lobby, community room, management office, maintenance shop, and parking garage, will be renovated with drywall repairs, painting, new flooring, and HVAC upgrades, as needed.

There will also be several new outdoor additions to the community including a community garden on the property’s terrace, grandparents’ playground, a seating and grilling area, and bocce ball courts. Indoor amenities will include a fitness room, game room, reading nook, and two community rooms with serve-in kitchens. New mailboxes with parcel boxes will also be installed.

Additionally, elevators and electrical and plumbing systems will be upgraded. The building’s signature cantilevered balconies and connecting outdoor breezeways will be fully restored and upgraded with new finish coating, bringing them back to their historical glory. Windows and select doors will be replaced, and the façade will receive concrete and masonry repairs.

“Like many communities we serve across the nation, there is a significant need for affordable housing in Rochester,” said Vice President of CPP East, John Fraser. “So, it’s incredibly satisfying to preserve this iconic affordable housing development for years to come. Andrews Terrace is a landmark and an important part of the community.”

Under an existing Housing Assistance Payment (HAP) contract Andrews Terrace currently has 496 of its apartments reserved for residents earning an Average Medium Income (AMI) of 50% or less, with 30 apartments set at 60% or less of AMI.

The transaction, which closed on December 21, 2023, includes a 20-year renewal to the Project-Based Section-8 contract from HUD, as well as a new 4% Low Income Housing Tax Credits (LIHTC) from the New York State Division of Housing and Community Renewal (NYSHCR), federal Historic Tax Credits (HTC) from the National Park Service, tax-exempt bonds issued by COMIDA (the County of Monroe Industrial Development Agency), and New York State Historic Tax Credits from the New York State Historic Preservation Office (SHPO).

“Renovations are scheduled to take 32 months to complete, with minimal impact to residents expected,” said Ari Shachter, Director of Acquisitions and project lead for Conifer.

About Conifer
Conifer Realty, LLC is a nationally ranked, full-service real estate company specializing in the development, construction, management, and ownership of high-quality, affordable housing communities. The company maintains offices in Rochester, NY, New York City, and Long Island, NY; Mount Laurel, NJ, and Columbia, MD, while expanding into new markets across the Midwest, Southeast and Southwest to fulfill the pressing need for high-quality, affordable housing. The company has developed more than 21,000 affordable housing apartments across more than 300 residential communities.

Visit http://www.coniferllc.com or find us on LinkedIn for more information.

About Community Preservation Partners
In 2004, Community Preservation Partners was established by our parent company, WNC & Associates, a national investor in affordable housing and community renewal initiatives. Since then, CPP has successfully acquired, developed, and rehabilitated more than 15,000 affordable multifamily and senior housing units nationwide. From the very beginning, they’ve done things differently. As more than a consultant or an investor, CPP is a true partner in every sense. By joining leading nonprofits and strategic partners, they can provide essential social services to residents, support neighborhood initiatives and transform multifamily affordable housing communities. Creativity, Performance, and Purpose are their core values and embody everything they do. Together they define A Different Way to Home for their excellent employees, partners, and communities. Visit https://www.cpp-housing.com/.

About the Goldman Sachs Asset Management Urban Investment Group (UIG)
Goldman Sachs Asset Management delivers investment and advisory services across public and private markets for the world’s leading institutions, financial advisors and individuals. Goldman Sachs oversees more than $2.6 trillion in assets under supervision as of September 30, 2023. The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets. In public markets, Goldman Sachs Asset Management is a leading investor across fixed income, liquidity, equity and multi-asset solutions. It is one of the largest managers of private capital globally and invests in the full spectrum of alternatives, including private equity, infrastructure, growth equity, private credit, real estate and sustainability.

Established in 2001, the Urban Investment Group within Goldman Sachs Asset Management has committed over $19 billion through real estate projects, social enterprises and lending facilities for small businesses and students, creating economic value and opportunities for underserved communities and families. Follow us on LinkedIn.

About KeyBank Community Development Lending and Investment
KeyBank Community Development Lending and Investment (CDLI) finances projects that stabilize and revitalize communities across all 50 states. As one of the top affordable housing capital providers in the country, KeyBank’s platform brings together construction, acquisition, bridge-to-re-syndication, and preservation loans, as well as lines of credit, Agency and HUD permanent mortgage executions, and equity investments for low-income housing projects, especially Low-Income Housing Tax Credit (LIHTC) financing. KeyBank has earned 10 consecutive “Outstanding” ratings on the Community Reinvestment Act exam, from the Office of the Comptroller of the Currency, making it the first U.S. national bank among the 25 largest to do so since the Act’s passage in 1977.

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CPP (Community Preservation Partners), a mission-driven affordable housing preservation developer has entered the Santa Fe market with the acquisition and planned renovation of two developments in the city: Sangre De Cristo Apartments and Santa Fe Apartments. Once renovated, the two developments will be restricted to households earning 60 percent or less of the Area Median Gross Income (AMI) and which will continue to benefit from project-based rental assistance.

Santa Fe Apartments, with 64 units, is located at 255 Camino Alire and was built in 1968. Approximately two miles away is Sangre De Cristo Apartments, built in 1970, encompassing 164 units, and located at 1801 Espinacitas Street. Apartment layouts of both developments include one-, two- and three-bedroom units, with the latter also offering 4-bedroom units. The communities will receive extensive renovations, estimated at $96,700 per unit. CPP’s total investment for both properties is approximately $93,693,000, which includes the combined purchase price of $41,818,000.

“Santa Fe is an important new market for CPP. With 38 communities in New Mexico, including our newest one in Albuquerque, this purchase is another example of our continued investment in affordable housing in the state,” said Karen Buckland, Vice President at CPP.

Extensive renovations will be made at both locations to upgrade resident accessibility and energy efficiency. All common areas will be modified for ADA compliance, ensuring accessible routes to units, site amenities and parking. A total of 13 Type A units will be designated, nine units at Sangre De Cristo Apartments and four units at the Santa Fe Apartments. In addition, five hearing impaired units will be provided, four units at Sangre De Cristo and one unit at the Santa Fe Apartments.

Energy efficient upgrades will include installation of LED lighting throughout, low flow and flush rated plumbing fixtures and Energy Star rated appliances. Additionally, any proposed landscape improvements will address water conservation. Upgrades inside units will include new vinyl plank flooring, low VOC paint and adhesives, and formaldehyde free cabinets and counters.

Both developments’ exteriors will have stucco repairs, new paint, full asphalt replacement, new playground equipment installation, and the repaving of an existing basketball court. Additionally, refrigerant air conditioning will be installed throughout, which neither sites had previously. At Sangre De Cristo Apartments there will be new windows installed, roof repairs, and upgrades made to the exterior stairs. Roofs at Santa Fe Apartments will be replaced, and solar panels installed.

The properties’ HUD subsidy was set to expire, but with CPP’s involvement the homes will now remain affordable and prevent displacement of residents earning 60% of AMI until 2054.

“We are looking forward to working with CPP on these new developments in New Mexico,” Bobby C. Griffith, CFO and Director of Acquisitions at JL Gray, the development’s management company and owner. “They are partners who share our commitment to helping provide affordable housing to families and individuals in our communities.”

Renovations are expected to be completed in December 2024, with minimal impact to residents.

Partners on the project include the New Mexico Mortgage Finance Authority, who is the bond issuer and awarded 4% low-income housing tax credits; US Bank provided equity and construction gap financing; and Keybank provided debt financing through the Freddie Mac TEL program.