New Affordable Housing Venture

An existing $3.4 billion portfolio of 275 affordable, multifamily housing communities, many in the greater Los Angeles area and the San Fernando Valley, will now be owned and managed by newly created company Highridge Costa Housing Partners. The company brings together Citi, investment firm Highridge Partners based in El Segundo, and Michael Costa, who most recently served as president of MacFarlane Costa Housing Partners. “These are attractive, well-managed properties that were part of a company that was the victim of a broken capital structure,” said John Long, founder of Highridge Partners. The portfolio of properties was previously owned by McFarlane Costa Housing Partners, based in Gardena. “We have recapitalized the business in a way that results in a stable, strong, and viable company going forward, benefitting the thousands of people who desperately need affordable housing across this country, generating positive income and cash flow to Citi and protecting the investments of the original lenders and partners in the portfolio,” Long said. The Highridge Costa portfolio of 275 properties is comprised of family and senior apartment communities, housing 80,000 residents in 34 states and Puerto Rico, with almost 50 percent of the properties in California. All were developed using federal low-income housing tax credits. The properties include Vintage Crest Apartments in Moorpark; Casa Madrid Apartments in North Hills; Sierra View Gardens in Palmdale; Oak Creek Senior Villas Apartments in Thousand Oaks; and Valley Village Apartments. In Simi Valley, properties include Harmony Terrace, Seasons in Simi Valley and The Haven at Tapo Street. “We explored several options for these properties and determined that a partnership with Highridge Costa maintains much needed affordable housing throughout the United States while protecting Citi’s investment,” said Steven N. Fayne, a managing director for Citi Community Capital, the community development lending and investing arm of Citi.