Challenges to Senior-Housing Buys in Affluent Markets

Kannan: “Affordable housing is often an overlooked asset class, but we’ve had everyone from Citibank to Google invest and lend in our tax-credit transactions.”

ANAHEIM, CA—Senior-housing owners might not want to sell if they think they can make more profit by converting to market-rate rents, which are very high, Community Preservation Partners’ president Anand Kannan tells GlobeSt.com. The firm recently acquired the Miracle Terrace Apartments here in a $53.5-million joint venture with nonprofit Jamboree Housing.

Irvine-based CPP will invest $7.4 million in renovations to Miracle Terrace as well as common areas that are accessible to all who dwell there. Located at 225 S. Western Ave. in Anaheim, the building’s rehabilitation will include new air conditioning units; energy-efficient appliances; water-conservation upgrades; exterior paint and façade improvements; interior corridor paint, flooring and amenity improvements; and newly installed countertops, cabinets and flooring. Additionally, CPP will work with Eco-Gen Energy, a clean-technology company that specializes in the building and installation of hybrid generators, to keep utility costs down and eventually have the option of bringing Miracle Terrace completely off the power grid. Jamboree will provide additional services to residents, including health-and-wellness programs, mobility-and-balance-awareness-programs, service coordination and community events.