SAN MATEO, CA – In a landmark move that promises to advance affordable housing efforts in high-cost markets, The Vistria Group and Ethos Real Estate announced the conversion of nearly 700 market-rate apartments to long-term affordable housing in San Mateo County, the wealthiest county in the United States by median incomes, home values, and investment income.
This transaction represents one of the largest market-rate to affordable housing conversions in California’s history. Conversion work at the project, known as Hillsdale Garden Apartments, is set to begin this month.
The partnership 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 remarked, “Our working-class neighbors deserve a stable home, dignified conditions, and responsive management. This project is an excellent example of how revitalizing existing homes and preserving their affordability can 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 across the country,” 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 initiative stands out not only for its scale but also for its leadership. Spearheaded by two prominent Black women in real estate, Margaret Anadu of The Vistria Group and ennifer Keith of Ethos Real Estate, this project marks a significant step towards diversity in major real estate transactions.
Jennifer Keith, Managing Partner and Co-Founder at Ethos Real Estate, emphasized the broader impact, “We are honored to be partnered with Vistria on preserving affordable housing at community scale. Our collective efforts will reduce displacement, improve existing housing conditions, and provide a range of social services for the residents of Hillsdale Gardens.”
The project benefits from exceptional walkability and access to transit, retail, healthcare, high-quality schools and parks. Key features of the affordable housing conversion include:
Transformation of 697 market-rate units to affordable housing, targeting households earning up to 80% of Area Median Income;
Significant capital allocated for interior and exterior upgrades to foster higher quality living standards; and
Implementation of comprehensive resident services in partnership with Pacific Housing, ranging from after school programs to skill building classes.
The project marks The Vistria Group’s third real estate investment in California and tenth real estate investment overall bringing the portfolio to over 6,000 units and a gross asset value in excess of $1.8 billion. Yusef Freeman, Partner for Real Estate at The Vistria Group said, “The Hillsdale Garden acquisition continues our commitment to the long-term creation of affordable housing at scale throughout California and within its most expensive communities.”