T
he Vistria Group and Ethos Real Estate have announced a landmark deal to convert nearly 700 market-rate apartments in San Mateo County, California's wealthiest county by median incomes, home values, and investment income, into long-term affordable housing. This transaction represents one of the largest market-rate to affordable housing conversions in California's history.
The Hillsdale Garden Apartments project will begin conversion work this month, with a focus on transforming 697 market-rate units into affordable housing targeting households earning up to 80% of Area Median Income. The initiative also includes significant capital allocated for interior and exterior upgrades to improve living standards and comprehensive resident services in partnership with Pacific Housing.
The partnership between The Vistria Group and Ethos Real Estate demonstrates an innovative approach to affordable housing, leveraging private capital with public and non-profit expertise to create sustainable community-focused solutions. San Mateo County Supervisor Noelia Corzo praised the project, saying it will allow residents to stay in their communities with dignity.
"This investment isn't just about real estate; it's about how private investment, local government, and non-profits can partner to create scalable and efficient models for addressing the housing crisis," said Margaret Anadu, Senior Partner and Head of Real Estate at The Vistria Group. "Everyone deserves an affordable home, and we take particular pride in creating that opportunity in communities with strong public schools and diverse job opportunities."
The project marks a significant step towards diversity in major real estate transactions, spearheaded by two prominent Black women in real estate, Margaret Anadu of The Vistria Group and Jennifer Keith of Ethos Real Estate. Jennifer Keith emphasized the broader impact, saying "We are honored to be partnered with Vistria on preserving affordable housing at community scale."
The project benefits from exceptional walkability and access to transit, retail, healthcare, high-quality schools, and parks. Key features include:
* Transformation of 697 market-rate units into affordable housing
* Significant capital allocated for interior and exterior upgrades
* Implementation of comprehensive resident services in partnership with Pacific Housing
This initiative marks The Vistria Group's third real estate investment in California and tenth overall, bringing the portfolio to over 6,000 units and a gross asset value in excess of $1.8 billion.
