Los Angeles

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Community Preservation Partners has invested $2billion in affordable housing communities. The significantmilestone comes after two years of rapid expansion in which thecompany built a portfolio of 8,000 low-income housing units. As anexample of the growth, the company invested its first billion over13 years, since its founding in 2004, and invested its secondbillion in just two years.

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"Affordable housing is a national issue. After focusing onrehabilitation and preservation in California for about 12 yearsand perfecting that model, we began a national growth initiative,"Anand Kannan, president of CPP, tells GlobeSt.com."In 2018, CPP opened an office in Virginia and started approachingowners of aging affordable housing communities who might not beable to invest in renovations but also want to take care of theirresidents. We are finding tremendous opportunities not only toimprove these assets and enrich the lives of residents, but also toextend the affordability of each community by renewing low incomehousing tax credits."

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CPP isn't the only company understanding the needs for moreaffordable housing stock, and as a result, the company has beenable to forge partnerships with financial partners, helping tosupport growth. "We've found that the demand for affordable housinginvestments is still very high despite changes to the tax code,"says Kannan. "Recently, we've added new financial partners, such asKey Bank and Wells Fargo, while maintaining our long-standingrelationships with lenders like Citi and California Bank &Trust. They all realize that affordable housing is a worthwhileinvestment because it is proven to strengthen communities, and it'seconomically attractive with minimal risk and competitive returnsfrom an after-tax standpoint."

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Focusing on East Coast markets has been key to CPP's growth."Since targeting the Eastern U.S. a couple years ago, we'veacquired, enhanced and preserved two communities in New York, twoin Virginia, one in Pennsylvania and have many more in thepipeline," says Kannan. "We've also entered Colorado, Utah, and NewMexico and added to our robust portfolios in Southern Californiaand the Bay Area where we're working on one of the biggestaffordable housing rehabs in the nation. There really isn'tanywhere that we're not looking to grow."

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This year, CPP expects similar growth as a result of the onlyrising demand for affordable housing stock. "We are very bullish onaffordable housing this year. The opportunities for preservation,in particular, are very exciting," says Kannan. "In addition to thebenefits for investors and residents, rehabs are also the mosteco-friendly type of development. All of these economic andsocioeconomic forces are coming together at the moment of peakdemand."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.