MidPen Lands $163M for Affordable Project
Wells Fargo issued the funds for a community in the San Francisco area.
MidPen Housing Corp. has secured a financing package of $162.9 million for the 113-unit second phase of Midway Village, an affordable redevelopment in Daly City, Calif. Wells Fargo issued the funds.
A midrise building will contain phase two’s apartments, which will cater to residents earning between 15 and 60 percent of the area median income. Of the 113 units, 29 will be set aside for formerly homeless individuals experiencing health-related issues. Section 8 vouchers are bound to cover 67 units for a 20-year period.
The financing package included $62.7 million in LIHTC equity provided by Wells Fargo Community Lending and Investment group, as well as a $76.7 million construction note. Wells Fargo Multifamily Capital Group also issued a $23.5 million Freddie Mac tax-exempt loan.
READ ALSO: How Tariffs and Labor Shortages Will Thwart Housing Production
The project’s site is at 80 Park St., about 8 miles south of downtown San Francisco. The Bayshore Caltrain Station operates less than 2 miles away, while several parks can be found within walking distance.
Amenities will comprise a garden and community room, barbecue and picnic area, as well as a tech and reading space. An existing childcare center will also receive an overhaul. What’s more, MidPen will provide resident services, including health and mental care.
Transforming an aging affordable community
Midway Village is a multi-phase redevelopment and expansion of an existing San Mateo County Housing Authority property, which debuted in 1977. Residents will not move off-site during the construction process.
Upon full build-out, the new community will encompass 555 units, replacing the previous 150 aging and outdated apartments. The first stage—also financed by Wells Fargo—already debuted last year. Its 147 units are likewise reserved for residents earning between 15 and 60 percent of AMI.
Metro San Francisco’s predominantly affordable pipeline
Although national affordable completions are set to peak this year, starts dropped by 28.7 percent to 66,000 units in 2024, according to a Yardi Matrix report. Among the factors that led to less affordable projects breaking ground were the interest rates, price of land, materials, labor, as well as rising insurance costs.
Greater San Francisco’s overall multifamily starts were also down significantly, with construction starting on just 2,909 units in 2024, compared to 7,593 apartments the year before, another Yardi Matrix report shows.
However, the market’s ongoing efforts to address the affordable housing supply challenges led to a pipeline dominated by affordable projects—more than half of the 13,620 under-construction apartments in December were within fully affordable developments.
