Community Preservation Partners acquires Highland Park Apartments

Community Preservation Partners (CPP), a developer focused on affordable housing preservation, has acquired Highland Park Apartments in Milwaukee, Wisconsin, for $14 million. This strategic acquisition includes plans for significant renovations, aiming to maintain and enhance the long-term affordability of the property.

The Highland Park Apartments, located on West Highland Avenue, comprises 150 units within three three-story buildings. Originally constructed in 1973 and last renovated in 2009, the apartment complex offers 100 one-bedroom and 50 two-bedroom units. The envisioned redevelopment plan for the site has a total cost estimate of $38 million, factoring in both the acquisition and the approximately $68,982 budgeted for renovations per unit.

CPP's plans for Highland Park are heavily centered around addressing maintenance deficiencies and implementing energy-efficient upgrades. According to Alexis Castillo, Development Manager at CPP, the goal is to secure housing stability and improve resident safety and comfort. Planned upgrades include modernizing building systems such as HVAC systems, installing new energy-efficient windows, improving roofing, and enhancing site security with updated lighting and access features. Additionally, outdoor enhancements are slated, including new gathering spaces, a playground, and fitness amenities.

Highland Park Apartments serve a critical role in Milwaukee's affordable housing landscape, particularly given its high occupancy rate of over 98% and a regional vacancy rate for similar properties at below 2%. The property operates under a project-based Section 8 Housing Assistance Payments contract, which caps rent at 30% of residents' income, supporting families at or below 60% of the Area Median Income. CPP's investment seeks to address the persistent shortage of affordable housing options in the area while aligning with Wisconsin Housing and Economic Development Authority's (WHEDA) green building standards.

The renovation process is projected to conclude by spring 2027, with a phased approach allowing current residents to remain on-site throughout the construction period, thereby avoiding permanent displacement. The execution of these plans will help ensure that the Highland Park community remains a viable and enduring option for low-income families in Milwaukee.