
Nearly 700 market-rate apartments will be converted to long-term affordable housing in California’s San Mateo Country, one of the nation’s most expensive housing markets.
The deal by The Vistria Group and Ethos Real Estate would be one of the largest market-rate to affordable housing conversions in state history, according to officials.
The partners recently acquired the 697-unit Hillsdale Garden Apartments in San Mateo from a publicly traded company. Terms of the sale were not disclosed.
“This investment isn't just about real estate; it’s about how private investment, local government, and nonprofits can partner to create scalable and efficient models for addressing the housing crisis across the country,” says 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 acquisition and affordable housing conversion is spearheaded by two prominent Black women in real estate—Anadu and Jennifer Keith of Ethos Real Estate.
“Our collective efforts will reduce displacement, improve existing housing conditions, and provide a range of social services for the residents of Hillsdale Gardens,” Keith says.
The conversion will bring new affordable housing options to an area with soaring costs. The median rent in San Mateo County is $3,250, and the average home value is $1.5 million, according to Zillow.

Hillsdale Garden Apartments has been a true market-rate development with no income restrictions. Built in the 1940s on about 38 acres, the apartment community is near shopping and within walking distance to two health large centers and transit.
Another buyer could have come in and raised rents at the development. However, The Vistria Group, the principal investor, and Ethos Real Estate, the general partner and operator, have other plans.
The team plans to target residents and cap rents at 80% of the area median income (AMI). The partnership is utilizing a Freddie Mac loan and has put a long-term deed restriction on the property that will cap rents, according to Yusef Freeman, partner for real estate, at The Vistria Group.
“This is the type of work that Ethos and Vistria have executed together in California,” he tells Affordable Housing Finance. The firms partnered on a similar but smaller transaction in San Diego.
In addition, Vistria has been looking at these types of opportunities across the country. It has done deals in Texas and in Illinois, creating affordability in previously unrestricted properties.
At Hillsdale Garden, existing residents who earn more than the new income standards will have the opportunity to stay in their homes, according to Freeman.
However, as apartments turn over, new residents will be required to meet the new restrictions.
As units become vacant, they will be upgraded as needed. Fortunately, the development does not require a major rehabilitation, according to the team.
Hillsdale Garden has been well maintained over the years, with a swimming pool, outdoor areas, and other amenities, says Freeman.
The team, in partnership with Pacific Housing, plans to implement comprehensive resident services at the development, ranging from after-school programs to skill-building classes.
The project marks The Vistria Group's third real estate investment in California and 10th real estate investment overall, bringing its portfolio to over 6,000 units and a gross asset value in excess of $1.8 billion.