The 144-unit complex provides affordable housing for families in San Diego County
EL CAJON, Calif., Aug. 29, 2024 (GLOBE NEWSWIRE) — Preservation Equity Fund Advisors, LLC (PEF Advisors), a real estate private equity group focused on preserving existing affordable housing in expensive markets, announced the recent sale of Lexington Green, a 144-unit apartment community in El Cajon, California, a community 17 miles east of Downtown San Diego. PEF Advisors acquired the facility in July 2021. The property was originally developed in 1970 and extensively redeveloped in 2007 with new low-income housing tax credits (LIHTC). The property consists of 18 two-story buildings with one-, two-, and three-bedroom apartments and is targeted at families with household incomes 50-60% of the area median household income. 76% of the units are covered by a project-based Section 8 contract.
PEF Advisors invested over $1.2 million in deferred maintenance in common areas and building systems replacements. Additionally, energy-efficient retrofits were implemented, including solar panels, resulting in annual savings of $30,000 in common areas and approximately $85,000 for tenants (an average of $49 per unit per month).
“We originally planned to hold this property for six years,” said Ann Caruana, President & Chief Investment Officer at PEF Advisors. “However, strong market fundamentals and the availability of bonds in California allowed an exit after just three years.” The property was sold to a developer who secured a bond allocation and new low-income tax credits that will extend the affordability period for an additional 55 years. Caruana explained, “This early sale provided the triple benefit of securing long-term affordability for residents, extending the useful life of the buildings and delivering above-expected returns to our investors.” The new owner expects to invest approximately $60,000 per unit to upgrade the building systems and renovate the interior units.
About Preservation Equity Fund Advisors, LLC
Preservation Equity Fund Advisors, LLC (PEF Advisors) is a women/minority-led platform focused on acquiring and preserving existing affordable housing in high-cost markets through private equity financing since 2016. PEF Advisors is an affiliate of the WNC & Associates, Inc. (WNC) family of companies with access to WNC’s 53+ years of experience acquiring more than 1,700 properties representing $18 billion in affordable housing nationwide, including through tax credit and/or preservation equity strategies.
CONTACT: Media Contact: PEF Advisors Elaine Philis [email protected]
