CPP Buys 13-Story Methodist Towers Affordable Community in Erie, Pennsylvania

ERIE, Pa. — Community Preservation Partners (CPP), a mission-driven affordable housing developer, has acquired Methodist Towers, a high-rise affordable seniors housing community in Erie.

The 13-floor complex comprises 138 units, 57 of which receive subsidy under a Section 8 Housing Assistance Payments (HAP) contract. CPP plans to implement a tenant in-place rehabilitation with minimal displacement for residents.

CPP received an issuance of tax-exempt bonds and Low-Income Housing Tax Credits (LIHTCs) from the Pennsylvania Housing Finance Agency (PHFA), with construction and permanent loans from Citibank as well as equity raised from the sale of LIHTCs from PNC Bank, to finance the property acquisition and rehabilitation.

Although the price was not disclosed, CPP said it plans to spend $20 million on the acquisition and renovation. Cornerstone Group is a partner on the project.

Methodist Towers is located in the heart of downtown Erie, within view of the Lake Erie waterfront and surrounded by Gannon University, as well as several medical centers including The University of Pennsylvania Medical Center Hamot campus.

“While the property was built and lovingly maintained by the First Methodist Church of Erie, it suffered from severe deferred maintenance,” says John Fraser, director of development at CPP. “Major building systems require upgrading and replacement, including the roof, elevators and HVAC equipment. The property was built in 1973, has never been through a meaningful rehab, and as such, unit and common area finishes need upgrades and modernization.”