Acquisition and Rehab
KDF Communities has a well-established development program for the acquisition and rehabilitation of existing apartment communities. KDF has completed the acquisition and rehabilitation of approximately 5,000 units. The median year of construction is about 1970, and the median size is 120 units. Not all of the properties were in need of significant rehabilitation at the time of purchase, but KDF has had particular success taking a dilapidated property and revitalizing it. The new life given to our properties often helps change the tenor of the surrounding neighborhood. Our program includes apartment acquisition, capital needs assessment, redevelopment planning, renovation, and implementation of new management policies. We work closely with our City Partners to make sure we are addressing the needs of the project and within the community. Our acquisition and renovation strategies have resulted in satisfied City Partners since we have, in many cases, been able to fix a project that was once considered a problem, while providing a cost-effective solution to the challenge of providing affordable housing amongst high land and construction costs. A well-executed property redevelopment and repositioning program is an attractive alternative to new construction in select markets.
Properties that we purchase typically receive the following benefits:
A major rehab of the property, with an average of $25,000 - $50,000 per unit renovation expense.
Tight controls on the property, which means no more overcrowding and no more deferred maintenance.
Long-term, caring ownership. KDF still owns over 90% of the properties it has developed or rehabbed.
Residents stay for years, especially when their rent is significantly below market.
A strong sense of community among the residents, fostered by interactions from the social services KDF provides and the long-term nature of the tenancy.
KDF seeks properties of 50 units or more in California and throughout the west coast. The property needs to have been held for ten years or longer by the current owner in order to be eligible for tax credits. Please refer to the Acquisition Rehab Case Studies to see some of the properties that KDF has acquired and renovated.