Hudson Valley Property Group is moving deeper into the Golden State with its latest investment in Northern California.
The New York City-based firm acquired Mosa Apartment Homes, a 387-unit affordable multifamily community at 10149 Bruceville Road in Elk Grove, for $83.6 million, Housing Finance reported. The property was completed last year and was developed by E. Smith & Company and UrbanCore Development.
The nearly $84 million deal includes the assumption of permanent debt on the 14-building garden-style property. Mosa is structured across three low-income housing tax credit partnerships, each governed by separate regulatory agreements. Hudson Valley Property Group acquired the general partner interests in each partnership, effectively taking stewardship of the project’s affordability framework.
Hudson Valley Property Group completed the acquisition with financing 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, Pulse reported.
California-based nonprofit Pacific Housing will serve as the managing general partner in the transaction and will provide on-site residence services such as after-school and teen programming and adult education and skill-building classes. The property has one-, two- and three-bedroom units ranging from 612 to 1,145 square feet and comes complete with rooftop solar panels, a fitness center and a library, the Sacramento Business Journal reported.
Income restrictions range from 30 to 80 percent of area median income, or between roughly $27,050 and $72,050 for one person. Approximately 8 percent of the 387 units are further supported by tenant-based vouchers. The acquisition locks affordability protections in place for another 30 years and will not displace residents, according to Hudson Valley.
The Mosa acquisition marks Hudson Valley Property Group’s second investment in California. Its national portfolio totals roughly 18,700 preserved affordable units across 99 properties in 13 states.
The City of Elk Grove is required by the state to plan for 8,263 new housing units by 2029. Of those, 4,265 of the residences must be designated as affordable. — Chris Malone Méndez
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