Chippenham Place has 144 units spread across 36 two-story townhome-style structures on 13 acres. (Charlotte Matherly photo)
A West Coast developer with a focus on income-based housing has expanded its footprint to central Virginia, and its inaugural project aims to revitalize a piece of South Richmond.
Lincoln Avenue Capital (LAC) is planning a complete renovation of the Chippenham Place Apartments, a 144-unit complex it acquired earlier this summer for $18.1 million, according to city records.
“The opportunity for this property came to market, and so we jumped on it because not only does it fit our mission with preserving affordable housing, but we just have a strong opinion of Richmond and other markets in Virginia that it was just a good fit for us,” said Wes McLean, a vice president and regional project partner at LAC.
Wes McLean
McLean, who is leading the project at 5833 Orcutt Lane, said the apartment complex was built in 1980 and has had only minor updates since then. He said it’s a prime candidate for LAC and will get a full refresh – a complete interior and exterior renovation with new kitchens, bathrooms, floors and more.
LAC will redo the roofs and windows and replace older systems with more environmentally friendly ones, including energy-efficient appliances. The renovations are planned to be completed by the end of 2024.
Renters can stay in their units while renovations are underway, McLean said. Each unit will take about four to five days to complete and LAC will provide residents with food stipends and hospitality suites – a place they can go during the day while construction is active in their apartments. Residents will be able to return to their units at night. If the construction is more invasive, McLean said LAC will cover the costs to temporarily relocate tenants to a hotel.
LAC has budgeted $9.5 million for the core project, McLean said, funded in part by the federal Low-Income Housing Tax Credit program. The Richmond Redevelopment and Housing Authority (RRHA) has already approved the issuance of tax-exempt bonds to fund the project, McLean said, and the rest will come from conventional financing, low-income housing tax credit equity and owner equity.
Chippenham Place is one of two Virginia projects LAC has in the pipeline.
While the apartments may be getting a makeover, the cost to renters will remain unchanged. McLean said the Chippenham Place Apartments are currently under a housing assistance contract with the Housing and Urban Development (HUD) government agency that requires tenants to pay only 30 percent of their income toward rent, no matter the price of the unit. The rest, even if prices fluctuate, is subsidized by HUD.
LAC intends to renew that contract for 20 years, McLean said, which will preserve the property’s affordability.
“The impact to the residents is zero, meaning that their portion of rent does not change at all,” McLean said. “They get a brand new unit, enhancements around the property, and the financial impact to them is zero.”
LAC bought the property, which consists of 36 two-story townhome-style units on 13 acres, from an entity tied to Rhode Island-based Atlantic American Partners. It had owned the complex since buying it for $4.3 million in 2007, city records show.
LAC also is active elsewhere in Virginia, with a new construction project in Fairfax that’ll provide new income-based housing to 150 to 250 households.
Chippenham Place has 144 units spread across 36 two-story townhome-style structures on 13 acres. (Charlotte Matherly photo)
A West Coast developer with a focus on income-based housing has expanded its footprint to central Virginia, and its inaugural project aims to revitalize a piece of South Richmond.
Lincoln Avenue Capital (LAC) is planning a complete renovation of the Chippenham Place Apartments, a 144-unit complex it acquired earlier this summer for $18.1 million, according to city records.
“The opportunity for this property came to market, and so we jumped on it because not only does it fit our mission with preserving affordable housing, but we just have a strong opinion of Richmond and other markets in Virginia that it was just a good fit for us,” said Wes McLean, a vice president and regional project partner at LAC.
Wes McLean
McLean, who is leading the project at 5833 Orcutt Lane, said the apartment complex was built in 1980 and has had only minor updates since then. He said it’s a prime candidate for LAC and will get a full refresh – a complete interior and exterior renovation with new kitchens, bathrooms, floors and more.
LAC will redo the roofs and windows and replace older systems with more environmentally friendly ones, including energy-efficient appliances. The renovations are planned to be completed by the end of 2024.
Renters can stay in their units while renovations are underway, McLean said. Each unit will take about four to five days to complete and LAC will provide residents with food stipends and hospitality suites – a place they can go during the day while construction is active in their apartments. Residents will be able to return to their units at night. If the construction is more invasive, McLean said LAC will cover the costs to temporarily relocate tenants to a hotel.
LAC has budgeted $9.5 million for the core project, McLean said, funded in part by the federal Low-Income Housing Tax Credit program. The Richmond Redevelopment and Housing Authority (RRHA) has already approved the issuance of tax-exempt bonds to fund the project, McLean said, and the rest will come from conventional financing, low-income housing tax credit equity and owner equity.
Chippenham Place is one of two Virginia projects LAC has in the pipeline.
While the apartments may be getting a makeover, the cost to renters will remain unchanged. McLean said the Chippenham Place Apartments are currently under a housing assistance contract with the Housing and Urban Development (HUD) government agency that requires tenants to pay only 30 percent of their income toward rent, no matter the price of the unit. The rest, even if prices fluctuate, is subsidized by HUD.
LAC intends to renew that contract for 20 years, McLean said, which will preserve the property’s affordability.
“The impact to the residents is zero, meaning that their portion of rent does not change at all,” McLean said. “They get a brand new unit, enhancements around the property, and the financial impact to them is zero.”
LAC bought the property, which consists of 36 two-story townhome-style units on 13 acres, from an entity tied to Rhode Island-based Atlantic American Partners. It had owned the complex since buying it for $4.3 million in 2007, city records show.
LAC also is active elsewhere in Virginia, with a new construction project in Fairfax that’ll provide new income-based housing to 150 to 250 households.
It’s great to see this amount of investment in affordable housing with a 0% increase in monthly housing expense for the tenants.
Thank you, more of this please! Wishing best success for this project.