Community Preservation Partners has expanded its holdings in New Mexico with the acquisition and planned renovation of two affordable housing communities in Santa Fe, N.M. The two properties total 228 units. CPP acquired the properties from JL Gray for a total of $41.8 million and is planning to invest approximately $93.7 million on renovations.
Sangre De Cristo Apartments, located at 1801 Espinacitas St., is the larger of the two assets with 164 units, while Santa Fe Apartments, at 255 Carmino Alire, has 64 units. Once renovated, the two developments will be restricted to households earning 60 percent of the Area Median Income and will continue to benefit from project-based rental assistance. The properties’ HUD subsidy was set to expire, but the homes will now remain affordable until 2054.
CPP received financing totaling approximately $59.9 million in the form of New Mexico Mortgage Finance Authority Multifamily Housing Revenue Bonds, with US Bank as the trustee. Sangre De Cristo Apartments received an estimated allocation of approximately $43.1 million, based on average value per unit across the entire portfolio, according to Yardi Matrix data. Santa Fe Apartments received an estimated allocation of $16.8 million, based on average value per unit across the portfolio. The loan bears an annual interest rate of 5 percent and matures Feb. 1, 2042, according to the Yardi Matrix data. New Mexico Mortgage Finance Authority is the bond issuer and was awarded 4 percent Low Income Housing Tax Credits. According to CPP, US Bank provided equity and construction gap financing and KeyBank provided debt financing through the Freddie Mac TEL program.
JL Gray, which is also the property manager, had acquired both properties from Monarch Properties in January, paying approximately $10.8 million for Sante Fe Apartments and $27.6 million for Sangre De Cristo, according to Yardi Matrix data.
Affordable duo
Sangre De Cristo Apartments was built in 1970 and is situated on 9.14 acres. The property has one-, two-, three- and four bedroom layouts ranging from 586 square feet to 1,060 square feet, with an average of 808 square feet. Santa Fe Apartments is situated on 4.73 acres and was built in 1968. It has one-, two- and three-bedroom floorplans ranging from 670 square feet to 1,050 square feet, with an average of 865 square feet, according to Yardi Matrix data.
Santa Fe Apartments has a basketball court, playground, laundry facilities and a total of 140 parking spaces. Sangre De Cristo Apartments has a clubhouse, laundry facilities, private balconies or patios, semi-private entrances and a total of 340 parking spaces. The communities are located about 2 miles from each other.
Renovations planned
Both properties will be renovated at an estimated cost of $96,700 per unit. Resident accessibility and energy efficiency will be upgraded. A total of 13 accessible units will be designated, with Sangre De Cristo Apartments getting nine and Santa Fe Apartments getting four units. In addition, four hearing impaired units will be designated for Sangre De Cristo Apartments and one at Sante Fe Apartments.
Energy efficient upgrades will include installation of LED lighting, low flow and flush rated plumbing fixtures and Energy Star rated appliances. Any proposed landscape improvements will address water conservation. Unit improvements will include new vinyl plank flooring, low VOC paint and adhesives and formaldehyde-free cabinets and counters.
Repairs to the stucco exteriors of both developments will be made. Upgrades will also include fresh paint, full asphalt replacement, new playground equipment and repavement of the Santa Fe Apartments’ basketball court. At Sangre De Cristo Apartments, new windows will be installed, upgrades will be made to exterior stairs and repairs will be made to the roof. Roofs at Santa Fe Apartments will be replaced and solar panels installed.
Last month, CPP purchased two affordable housing communities in Albuquerque, N.M., with a total of 241 units for $22.3 million: Mountain View II and III, also from JL Gray. CPP also plans to renovate the properties for a total investment of about $65.8 million. They will be operated as one community going forward, serving residents earning 60 percent AMI for the next 30 years.
