OAKLAND, Calif., June 3, 2015 (GLOBE NEWSWIRE) -- WNC, a national investor in real estate and community development initiatives, announced today that its subsidiary, Community Preservation Partners LLC, has acquired Northgate Terrace, a 201-unit affordable senior housing community in Oakland, Calif., in a joint venture with Related Affordable LLC, for $27.5 million. The joint venture will perform a complete renovation of the existing property, originally constructed in 1969 with a HUD 202 loan.
The project is expected to cost approximately $47 million to complete, including acquisition and renovation. Operating as Northgate Terrace Community Partners L.P., the joint venture between Community Preservation Partners and Related Affordable will provide approximately $10.5 million in financing to help rehabilitate the property. WNC, the parent company of Community Preservation Partners, will provide more than $15 million in additional equity via low-income housing tax credits. The remaining costs will be funded with a permanent loan from Citi Bank.
"This project required unique financing that included prepayment of the existing HUD loan under a preservation transaction, and the agency's acceptance of the revaluation of the property to market rate," said Anand Kannan, president of WNC's Community Preservation Partners, LLC. "This enabled the joint venture to secure the financing required to properly rehabilitate and maintain this community as part of the nation's desperately needed affordable housing inventory."
The comprehensive renovation to the 11-story high-rise at 550 24th St. will include: a new façade, seismic upgrades, general plumbing improvements, a new community room, entry, medical exam space, computer area and gym, as well as an upgrades to the building's elevators. Other amenities to be enhanced are the kitchen, controlled access systems, group lounges, television and library room, clubhouse and security. The property's 180 studio units and 21 one-bedroom units will all receive new appliances, lighting, fixtures, cabinets, countertops and more.
The building was originally constructed using a process called "foldcrete," in which precast concrete slabs and walls are folded like origami to create room blocks. It is believed to be the only building of this style in the U.S., and was patented by Delp W. Johnson of San Francisco, and William C. Harr.
Kannan added, "This joint venture combines significant expertise and financial strength from two of the most experienced rehab developers in the nation. The project itself has been structured to provide the maximum long-term benefit to residents while impacting their lives as little as possible during construction."
About WNC
WNC, founded in 1971 and headquartered in Irvine, Calif., is a national investor in real estate and community development initiatives. WNC has acquired more than $6.7 billion of assets totaling in excess of 1,225 properties in 45 states, Washington D.C. and the U.S. Virgin Islands. Since 2000, WNC has been awarded four New Markets Tax Credit (NMTC) allocations, totaling $178 million, and has facilitated development of 17 low-income community projects. WNC's investor base exceeds 19,500 institutional and retail clients, including Fortune 500 companies, multinational banks, and insurance companies. Additional information is available at www.wncinc.com.