Hudson Valley Property Group (HVPG) has expanded its growing portfolio with the acquisition of a recently built affordable housing community in Elk Grove, California.
The firm announced that it has acquired Mosa Apartment Homes, a 14-building, 387-unit property that was completed last year. Total project costs related to this transaction are approximately $83.6 million, inclusive of the assumption of permanent debt.
The property is structured across three low-income housing tax credit (LIHTC) partnerships, each subject to its own regulatory agreement covering 100% of units, with HVPG acquiring the general partner interests in all three. Approximately 8% of units are further supported by tenant-based vouchers, and income restrictions span 30%, 50%, 60%, and 80% of the area median income (AMI). As a result of HVPG’s acquisition, affordability at Mosa is locked in for an additional 30 years, and no residents will be displaced through the transaction, according to the company.
“Mosa represents a meaningful expansion of our West Coast portfolio and preservation strategy, extending our work to safeguarding affordability at newly delivered communities in addition to repositioning legacy properties,” said HVPG co-founder and managing partner Jason Bordainick. “By stepping into ownership shortly after completion, we are helping ensure that 387 families benefit from a quality, well-managed home with long-term affordability protections for decades to come. We are grateful to our partners at the city of Elk Grove and the California Municipal Finance Authority for their support of this important transaction.”
The acquisition was financed through three Freddie Mac loans originated by Greystone, with LIHTC equity provided by Red Stone Equity Partners and public finance support facilitated by the California Municipal Finance Authority and the city of Elk Grove.
The property was developed by E. Smith & Co. and UrbanCore Development, according to reports.
California-based nonprofit Pacific Housing will serve as the managing general partner in the transaction and will provide on-site residence services, including after-school and teen programing, adult education and skill-building classes, and individualized service coordination connecting residents to community resources.
Mosa is New York-based HVPG’s second property in California. Across its national portfolio, the firm has preserved 18,700 units across 99 properties in 13 states.