McCormack Baron Salazar and key stakeholders complete agreement for Mirasol Village affordable housing development
July 29, 2020 | McCormack Baron Salazar
SACRAMENTO (July 29, 2020) – The Sacramento Housing and Redevelopment Agency, the Housing Authority of the City of Sacramento, and McCormack Baron Salazar (MBS) today announced that they have completed relocation and demolition and will begin construction of Mirasol Village, a five-phase redevelopment of the Twin Rivers housing project north of downtown Sacramento, MBS announced today. Located near the confluence of the American and Sacramento Rivers, Mirasol Village will be a vibrant, 22-acre, mixed-income residential complex consisting of 489 new affordable, workforce and market-rate rental apartments. Construction will begin this year on the first and second phases of the $247 million redevelopment plan. Phases I and II will include 227 family units and are scheduled for completion by 2022.
“The River District is transforming from a declining industrial area into one of the largest mixed-use infill opportunities in the country,” said Dan Falcon, Managing Director, McCormack Baron Salazar. “Mirasol Village will be everything a neighborhood should be – walkable, safe, affordable – and, with a new Light Rail stop located across the street, close to transportation.”
In addition to the its proximity to the new Dos Rios Light Rail station, Mirasol Village will include sidewalks and bike lanes on main travel corridors, as well as a connection across the American River to downtown Sacramento. It will include a new 1.6-acre public park and community garden. The project will include new streets and an early childhood education center. The Mirasol Village apartment community is working towards LEED-ND Gold Certification certified, as well as Green Point rated Gold.
Built in the 1940s, by the early 2010s, the 218-unit Twin Rivers Public Housing site had become obsolete, isolated and severely distressed. All residents of Twin Rivers will be offered housing at Mirasol Village. The Sacramento Housing and Redevelopment Agency has hired the non-profit human capital coordinator Urban Strategies, Inc. (USI) to lead the “people” component of the redevelopment. USI will provide intensive case management for residents in coordination with citizen-directed planning and resident engagement. Examples of services include employment and skills training; health and wellness programs; financial education; early childhood services; after-school and summer programming; and community safety programming.
A core component of the McCormack Baron Salazar development approach is layering public and private funds to transform communities across the country. Mirasol Village initially received a Choice Neighborhoods planning grant, followed by a $30 million Choice implementation grant from HUD. The first mortgage is from Freddie Mac, serviced by Berkadia Commercial Mortgage, LLC. U.S. Bank National Association is providing the construction loan and U.S. Bancorp Community Development Corporation is the equity investor. Funding also is being provided by the Sacramento Housing and Redevelopment Agency, the Housing Authorities of Sacramento City and County, the City of Sacramento, the California Department of Housing & Community Development, the California Strategic Growth Council, the California Department of Developmental Services, the California Tax Credit Allocation Committee, and the California Debt Limit Allocation Committee.
SVA Architects is the project architect and Midstate Construction Corporation is the general contractor. The John Stewart Company will serve as property manager.