CPP Acquires MCA III Apartments for Extensive Renovation
Deal News | Dec 16, 2024 | Globenewswire
Community Preservation Partners (CPP) has announced the acquisition of MCA III Apartments, a 20-unit affordable housing complex located in south-central Los Angeles, in a bid to address the significant demand for affordable housing in the region. Built originally in 1958, the property will undergo a comprehensive renovation as part of CPP's strategy to preserve and modernize affordable housing. With a total development investment of $13.1 million, including a purchase price of $7.25 million and renovation costs of $163,000 per unit, the renovations will upgrade building systems, enhance energy efficiency, and construct new community spaces. Additionally, the project will involve partners such as LifeSTEPS, U.S. Bank, and KeyBank, with financing from the California Tax Credit Allocation Committee. The renovation is anticipated to complete by June 2025, securing a 20-year renewal for the Section-8 Housing Assistance Payment contract.
Sectors
- Real Estate
- Affordable Housing
- Construction
- Finance
Geography
- United States – The article discusses activities in Los Angeles, CA, part of the United States.
- California – MCA III Apartments and other transaction participants, such as CTCAC, are based in California, specifically in the Los Angeles area.
- Los Angeles – Location of the property MCA III Apartments and area of focused improvement and investment by CPP.
Industry
- Real Estate – Involves the acquisition and rehabilitation of residential property MCA III Apartments, indicating a focus on the real estate sector.
- Affordable Housing – Relates to the acquisition and renovation of affordable housing units to preserve and enhance their use.
- Construction – Significant renovation implies activities related to the construction industry, involving upgrades and modernization of the property.
- Finance – Financial structuring and partnerships with banks and investment committees are central to the funding and execution of the project.
Financials
- $13.1M – Total development investment including purchase price and renovation costs.
- $7.25M – Purchase price for the acquisition of MCA III Apartments.
- $163,000 – Approximate renovation cost per unit.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Community Preservation Partners (CPP) | Buyer | Company | A mission-driven affordable housing preservation developer acquiring MCA III Apartments. |
| MCA III Apartments | Target | Company | An affordable housing complex in Los Angeles acquired by CPP. |
| U.S. Bank | Equity Partner & Construction Lender | Company | Financial partner providing equity investment and construction financing. |
| KeyBank | Permanent Lender | Company | Provides long-term financing for the project using a Freddie Mac product. |
| California Tax Credit Allocation Committee (CTCAC) | LIHTC Issuer | Government | Provides tax credits to support the financing of the affordable housing project. |
| LifeSTEPS | Community Partner | Charity | Provides on-site adult education, health and wellness, and skill-building classes. |