J.L. Gray Company Take Ownership of Six NM Properties
Community Preservation Partners (CPP) recently closed on six rural communities in Central New Mexico. This marks the final installment in a total grouping of 654 units in 20 properties across 10 counties in the state that began in 2019. CPP serves as the fee developer for J.L. Gray Company, who will own and operate the properties.
Purchased for $7.3 million with a 4 percent tax credit equity investment of $8 million, the central portfolio comprises 218 units across four family and two senior properties in Las Vegas, Portales, Artesia, Belen and Ruidoso Downs. Affordability for residents earning less than 60 percent AMI will be extended for another 35 years.
“In New Mexico, it is extraordinarily difficult for affordable housing communities in rural areas to secure the financing they need to address maintenance and rehabilitation,” said Anand Kannan, president at CPP. “With our experience in rural development, CPP was able to arrange the smaller communities into portfolios that would meet both the mortgage finance authority and the rural development requirements to make a reinvestment possible.”
CPP is overseeing the $32,000 per unit renovation. Construction is expected to complete in August 2022.
“CPP navigated the complex and challenging process of gaining approvals through the state and county offices to close on the largest 4 percent bond deal in the state of New Mexico,” said Bobby Griffith, CFO/principal of J.L. Gray Company. “Thanks to their expertise and tenacity over the past three years, we are able to preserve more than 650 homes for families and seniors in these hard-to-reach areas.”
Financing partners for the central portfolio include Bonneville, which is providing a 538 USDA guaranteed loan, bond underwriter Stifle and New Mexico MFA, bond issuer. USDA Rural Development is subordinating the existing 515 loan.
Lisa Brown has decades of experience in corporate communications and marketing management with organizations including Coldwell Banker Residential, Grubb & Ellis, Marcus & Millichap, NAIOP, SIOR and ALM.
In those positions, she worked in conjunction with chief executive officers and chief marketing officers to create corporate messaging, cohesive branding standards, strategic marketing plans and thought pieces. Brown is a frequent speaker at industry events and an editing adjunct professor for an online course. She has a master’s degree in mass communications from San Jose State University.