Multifamily developer acquires Grants apartments

Complex will be available to those making 60% or less of the median income

An out-of-state, multifamily developer has continued its expansion into New Mexico with the recent acquisition of Vista Mesa Villa — a three-story, 100-unit apartment complex in Grants.

The company, Community Preservation Partners, acquired the property in August in partnership with property management company JL Gray, who will serve as the owner and manager of the complex.

The acquisition cost was $6.5 million and CPP plans to invest $4.7 million in renovations, the company said. CPP’s total development investment is expected to be about $17 million.

“This transaction allows us to rehab the property and by partnering with JL Gray, we are also bringing the affordable housing community under local management and ownership,” said Anand Kannan, CPP’s president. “This project will strengthen the community by providing safe, affordable housing to the residents who need it.”

Vista Mesa Villa, which is comprised of one- and two-bedroom units, is for residents making 60% or less of the area median income, according to the news release.

With the acquisition, CPP will convert five units in the complex to be ADA accessible and will ensure that property amenities “are on the accessible path of travel for ADA access,” according to a news release.

The renovation will also include upgrades to counters, cabinets, floors, lighting, appliances, windows and doors for all 100 units on the property. CPP said each unit will approximately cost $45,000 to renovate. CPP said boilers will be replaced and roofing, electrical and plumbing systems will all be repaired.

Lastly, CPP said it will make upgrades to the playground with new equipment that will be installed and it will provide free internet access for residents on the property.

CPP, founded in 2004, focuses on acquiring affordable housing communities — many that are in rough shape — across the country and renovating them. To date, the company has acquired and rehabilitated about 11,000 multifamily and senior housing units across the U.S.

That includes other property acquisitions here in New Mexico. CPP began acquiring and renovating properties in 2013, said CPP Vice President of development Karen Buckland. She said CPP, to date, has completed about seven transactions, representing nearly 1,000 units across the state.

In November, the company announced it had acquired 218 units across the towns of Portales, Las Vegas, Artesia, Belen and Ruidoso for $7.3 million with a 4% tax credit equity investment of $8 million. They invested about $32,000 into each unit — which included six apartment complexes across those towns — and worked through renovations this year, the company said. Four of those apartment complexes have had renovations completed, Buckland said, and two more are expected to be completed by the end of the month.

Buckland added that CPP expects to complete transactions for an additional 460 units in the state in the first quarter of 2023, but declined to provide additional details since the deals are yet to be completed. But she said New Mexico is a state that CPP has a particular focus on, and one they will continuously look to invest in.

“A lot of these assets that are existing are at risk of losing their affordability,” she said. “We’re looking to preserve that.”