CPDC makes $20.7 million Investment in Workforce Housing in Norfolk, VA
CPDC President and CEO J. Michael Pitchford to lead organizational expansion into the Hampton Roads market
WASHINGTON, D.C., September 10, 2013 – Community Preservation and Development Corporation (CPDC), a premier nonprofit real estate developer in the mid-Atlantic region, today announced a $20.7 million investment in the acquisition and renovation of Woodmere Trace, a 300-unit workforce housing community in Norfolk, VA. This acquisition aligns with CPDC’s strategic plan which involves geographic market expansion into the seven cities of Hampton Roads, Richmond, VA, and Baltimore, MD. While this acquisition represents CPDC’s entree into the Hampton Roads market, the organization is committed to additional affordable housing and community development opportunities in the area. The acquisition is further motivated by CPDC President and CEO J. Michael Pitchford, a long-time resident of Norfolk.
“I have always had deep ties to the Norfolk community,” said Pitchford. “I attended Norfolk Catholic High School, Old Dominion University, and was the past chairman of Norfolk’s Harborfest. I am extremely excited about the opportunity to return to Norfolk to contribute to its development. CPDC is committed to having a presence in this area and is in the market to do business.”
Local officials are equally optimistic about CPDC’s planned growth in the area. To date, there are few nonprofit real estate developers of scale in Norfolk.
“Providing quality, well-managed workforce housing opportunities is a critical component of the effort to strengthen Norfolk’s neighborhoods, said John Kownack, Chief of Community Development at the Norfolk Redevelopment Housing Authority. “We are delighted to have an experienced developer such as CPDC committed to improving the overall quality of housing in our city.”
Woodmere Trace is located in the central portion of the City of Norfolk, an area that is ripe for growth and investment. With access to the Norfolk International Airport, the downtown area, large employment hubs and two major thoroughfares, this community is perfectly placed to serve the Hampton Roads workforce.
The deal will be financed through a unique investment tool called a Real Estate Investment Trust (REIT). The Housing Partnership Equity Trust, or Equity Trust, is a social-purpose REIT created to increase the stock and improve the quality of affordable and workforce housing across the country.
“This investment tool is a game changer for nonprofit developers because it provides our 12 partner organizations, including CPDC, with a ready source of capital to quickly and efficiently acquire and operate properties like Woodmere Trace for the long-haul,” said Drew Ades, President and CEO, Housing Partnership Equity Trust.
As part of its commitment to communities, CPDC involves all stakeholders in the development process. To that end, CPDC will host a series of meetings with Woodmere Trace residents, property managers and neighborhood groups before renovations begin. Planned restorations include full kitchen and bathroom renovations, roof and HVAC replacement where needed, improvements to exterior stairwells, and addressing landscaping issues throughout the site. Renovations should be complete by the end of 2014.
CPDC takes great care to ensure a positive resident experience. CPDC has partnered with S.L. Nusbaum, a company with a 100-year history of providing superior client service, to manage the Woodmere Trace community.
“Our residents are our top priority and we strive to provide a community that is well maintained and offers a great curb appeal that they can be proud to call home,” said William Halprin, Senior Vice President and Director of Operations, Multi-family Housing. “S.L. Nusbaum’s team is committed to providing a quick, professional response to all our resident’s maintenance or service needs whether they are ordinary or extraordinary in nature. We take pride in our prompt response capabilities and will deliver the best customer service to our residents 24 hours a day, 7 days a week.”
A premier developer of affordable housing in Washington, D.C., Maryland and Virginia, Community Preservation and Development Corporation (CPDC) works to develop vibrant communities through innovation and partnership. The organization currently owns over 4,500 dedicated affordable apartments within more than 25 communities, with resident engagement programs at many of its properties serving more than 9,000 residents. More about the company is available at www.cpdc.org.