Community Preservation Partners (CPP), one of the nation’s most active affordable housing preservation developers, announced the acquisition of Chandler Ridge Apartments, a 228-unit mixed-income community in Raleigh, North Carolina for $26 million. Purchased with 4 percent low-income tax credit equity, the deal preserves affordability for those earning 60 percent AMI or lower for an additional 30 years, while also extending affordability to 37 formerly market-rate units. Located at 4900 Chandler Ridge Circle, the property marks the company’s entry into North Carolina with plans to close on another property before the end of the year.
“As the second-fastest growing metro area in the U.S., Raleigh’s housing market is facing enormous pressure with few affordable options for renters, especially low-income families,” said Seth Gellis, senior vice president of CPP East. “By acquiring Chandler Ridge Apartments, we are able to preserve and extend the extremely scarce resource of affordable housing for more than 700 residents, while providing a meaningful renovation that will bring a new sense of pride to the community.”
Sitting on 18 acres, Chandler Ridge Apartments consists of 19 three-story garden-style buildings with 16 one-bedroom, 152 two-bedroom and 60 three-bedroom units. CPP is investing $60,000 per unit in construction renovations, including the modernization of building systems, secured access, new roofing and an upgrade to the exterior façade. Interior units will receive new Energy-star refrigerators, WaterSense toilets, electric ranges with hoods, dishwashers, garbage disposals and washer/dryer hookups, plus new flooring, cabinets, sinks and granite countertops. Upgrades will be made to the community amenities, including new playground equipment, a covered bus-stop area for kids, a revitalized swimming pool, laundry facility, community room, business center and barbecue/picnic areas.
Construction begins November 2021 and is expected to complete in December 2022. CPP also will provide comprehensive services to enhance the wellbeing of residents, including educational programs for children and adults, health care resources, career readiness classes, financial resource management and community building activities.
“Being able to execute this deal over the course of the pandemic is testament to the creativity and commitment of our team and partners to preserve affordable housing and help address America’s housing shortage,” said John Fraser, director of development at CPP. “As long-term owners of our communities, we look forward to being good stewards of this community and expanding our presence in the state.”
CPP financed the development with tax credit equity provided by PNC Bank and a loan from Redstone Tax-Exempt Funding with bonds issued by Wake County. Additional partners include general contractor MFRG-ICON and architect Ebersoldt & Associates.
CPP continues its aggressive growth initiative to expand its footprint across the country. Communities recently closed in the U.S. have led the company to deepen the affordability of neighborhoods across Colorado, Connecticut, Montana, North Carolina, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Tennessee, Utah and Virginia, in addition to its long history of providing affordable housing solutions across the state of California.