Partners buy affordable housing complex for $7.2M
An affordable housing complex in the region has two new out-of-state owners.
Community Development Trust in New York, or CDT, and Peak Capital Partners in Provo, Utah recently announced a partnership that has acquired Traditions of Holland, an apartment complex, at 13828 E. Traditions Way — as well as Pebble Creek Apartments in Southfield.
Together, the two complexes feature about 375 units.
Traditions of Holland was purchased for $7.2 million.
Pebble Creek Apartments was purchased for $16.9 million.
Plans for Traditions of Holland
Other than the planned improvements at the properties, “residents and staff will be unaffected," said Joseph Reilly, president and CEO, CDT.
Traditions of Holland, which is about 120,000 square feet, was built in 1996 and consists of about 120 units for families with household earnings below 60 percent of the area median income, Reilly said.
CDT plans to make improvements to both properties over the next four to five years: parking lot improvements; full roof and gutter replacements; and various energy and water/sewer-efficiency improvements, including installation of low-flow toilets, shower and faucet aerators and LED lighting fixtures.
Reilly said Peak and CDT have been actively exploring opportunities to partner together to acquire and preserve affordable housing for some time.
“The mission value in preserving both of these properties as affordable housing was quite appealing to us,” Reilly said. “With regard to Traditions of Holland in particular, a nearby property recently opted out of similar affordability restrictions — we fully intend to maintain the existing affordability restrictions at Traditions of Holland under our ownership. We are looking forward to owning and operating these properties as a partnership for the long run.”
When asked if CDT has any other acquisition plans in West Michigan, Reilly said that CDT invests nationwide to preserve affordable housing, and while it doesn’t necessarily target specific geographies for investments, “if we find further opportunities to acquire and preserve affordable housing in West Michigan, we would certainly explore those opportunities thoroughly.”
“We are very excited to have entered this market with a strong partner,” Reilly said.