Highridge Costa Investors, Llc

What Highridge Costa Investors, Llc does

Highridge Costa Investors, LLC is a private, vertically integrated affordable and workforce multifamily housing developer founded in 1994 by Michael A. Costa and headquartered in Gardena, California, with a regional office in Honolulu. The company develops, finances, constructs, owns, and operates rental housing communities restricted to households earning 30%–60% of Area Median Income, serving three primary resident segments: low- to moderate-income working families, seniors aged 55+, and homeless veterans and special-needs populations requiring supportive services. Since inception, Highridge Costa has developed more than 30,000 affordable housing units across over 300 communities in 33 states and Puerto Rico and is consistently ranked among the top five affordable multifamily developers and owners in the United States.

The firm's core operating model revolves around layered public financing structures. Projects are typically capitalized through Section 42 Low-Income Housing Tax Credit (LIHTC) equity syndicated to institutional tax-credit investors, tax-exempt mortgage-backed revenue bonds issued by state housing finance agencies, and supplemental sources including 501(c)3 bonds, tax increment financing, HUD programs (Section 8 Project-Based Vouchers, VASH vouchers, FHA financing), Fannie Mae and Freddie Mac debt, and state and local soft financing. Sustainable design is a consistent technical specification — developments meet Enterprise Green Communities 2020 standards, and the Kulana Hale project was built to LEED Platinum with rooftop photovoltaic generation. Highridge Costa operates through a development arm (Highridge Costa Development Company, LLC) and in 2018 launched Align Finance Partners, a tax-exempt subordinate bond fund providing second-position B-bond financing.

The go-to-market motion is government-centric. Revenue is generated from developer fees, construction management, ongoing asset management, and rental operations across the owned portfolio. Customers — in the procurement sense — are state housing finance agencies (HHFDC, CalHFA, Colorado HFA, Utah Housing Corporation, TDHCA), municipal housing and redevelopment departments (LA Housing Department, City of Ontario), county agencies (LA County Department of Mental Health), public housing authorities (HACLA, Hawaii PHA), and nonprofit co-developers (Hale Mahaolu, SRO Housing Corporation, Western Community Housing). Tax credit equity is placed with institutional investors including Citibank Community Capital, Aegon USA Realty Advisors, and Victoria Capital. The firm is privately held as a joint venture between founder Michael Costa and private equity firm Highridge Partners following a 2011 acquisition, and revenue is not publicly disclosed.

Name

Highridge Costa Investors, Llc

Legal name

Highridge Costa

Website

https://hcosta.com

Company type

Private

Founded year

1994

Operating status

Operating

Short description

Highridge Costa Investors, LLC is a private affordable and workforce multifamily housing developer and owner that develops, finances, constructs, and manages LIHTC- and tax-exempt-bond-financed rental communities serving low- to moderate-income families, seniors, and homeless veterans across 33 U.S. states and Puerto Rico.

Ownership category

akta.pro rank

Product category

Affordable Housing Development

NAICS

Residential Property Managers (531311), Rental and Leasing Services (532)

SIC

Real Estate Agents & Managers (For Others) (6531)

akta.pro primary industry

Affordable & Subsidized Housing Property Management (LIHTC, Section 8) (BPAJAFAD)

akta.pro secondary industries

Affordable Rental & Multifamily Housing Finance Programs (LIHTC/Tax Credits/Subsidized Loans) (FSALAKAF), Multifamily (Apartment) Property Management (BPAJAGAD), Multifamily Apartment Property Management (BPAJAFAA), Senior & Assisted Living Residential Property Management (BPAJAFAE), Rental / Fee-for-Service CCRCs (HLADAEAB)

Keywords

• Affordable housing development
• Multifamily rental housing
• Low-income housing tax credits
• Senior housing communities
• Workforce housing

Headquarters

HQ city

Gardena

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Infrastructure, Personnel, Others

Revenue model

1. Low-Income Housing Tax Credit (LIHTC) Equity: Development and syndication of federal low-income housing tax credits. Corporate America has invested over $55 billion since 1996 in the LIHTC program. The company structures deals where tax credit investors receive equity in exchange for tax credits, generating substantial capital for project financing.
2. Tax-Exempt Bond Financing: Projects financed using tax-exempt mortgage-backed revenue bonds, 501(c)3 tax exempt bonds, and Tax Increment Bonds. This layered financing approach reduces cost of capital for affordable housing developments.
3. Rental Housing Operations: Ongoing asset management and property operations of affordable housing communities. The company owns and manages the portfolio of 300+ communities providing steady recurring revenue.

Go-to-market motion1 record

Distribution channels4 records

Marketing channels6 records

Core offering

Develops, finances, owns, and operates affordable and workforce multifamily rental housing communities, specializing in Low-Income Housing Tax Credit (LIHTC) and tax-exempt bond-financed projects. The portfolio serves families, seniors, veterans, and special-needs populations through sustainable, certified green communities. The firm manages more than 300 affordable housing communities across the United States and provides asset management, property management, and real estate development services.

Product overview

Highridge Costa is an affordable housing real estate development company that creates multifamily living communities across the United States. The company operates as a unified portfolio of affordable housing developments rather than a technology product platform. Its core offerings include affordable family communities (such as Northwest Apartments, Twin Oaks), age-restricted senior housing (such as Kokua Hale, Kulana Hale, Liloa Hale), and permanent supportive housing for veterans and homeless individuals (such as Main Street Apartments, Central Apartments, RISE Apartments). The company also conducts large-scale redevelopment projects like Ka Lei Momi in Hawaii. Developments typically feature sustainable design elements meeting Enterprise Green Communities or LEED standards, incorporate mixed-use components with ground-floor retail, and serve households earning 30%-60% of Area Median Income (AMI).

Differentiator

Problem solved

Functional benefit

Products and services

• Northwest Apartments

Quantifiable outcome

• 1.7 Million Affordable Apartments created since LIHTC program's inception
• +2 more outcomes

Named customers5 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

Eleven partnerships are on record, tiered core and minor.

• Western Community HousingcoreStrategic or Co-development Partner · 2 November 2024Joint development partner for Main Street Apartments in Los Angeles, providing 57 units of permanent supportive housing for homeless veterans and families. Partnership includes Western Community Housing along with Los Angeles Housing Department, Los Angeles County Department of Mental Health, and Housing Authority of the City of Los Angeles.
• Hale MahaolucoreStrategic or Co-development Partner · 16 August 2024Nonprofit partnership for Liloa Hale 117-unit affordable senior housing project in Kihei, Maui. Hale Mahaolu serves as executive director Grant Chun leads the nonprofit partner responsible for senior housing operations and community services.
• Coastal Rim PropertiescoreStrategic or Co-development Partner · 16 October 2018Joint development partner for Kulana Hale $130 million mixed-use seniors housing project in Kapolei, Hawaii. Coastal Rim Properties, owned by Franco Mola and based in Honolulu, is the local development partner for this flagship Hawaii project.
• Align Finance PartnerscoreStrategic or Co-development Partner · 16 March 2018Co-founded by CEO Michael Costa and Robert Tetrault (CFO) to provide alternative financing for affordable housing. Creating $100-150 million bond fund for tax-exempt subordinate bonds. Raised $50 million initial capital. Provides second-position B bond financing for affordable housing developments.
• SVA ArchitectscoreTechnology or IntegrationArchitectural design partner responsible for designing multiple Hawaii projects including Kulana Hale, Pohukaina Commons (625 units at 690 Pohukaina), and Central Apartments. Ongoing partnership has delivered 300+ affordable homes in Hawaii.
• Dohn ConstructionminorOthersFt. Collins-based construction company built Northwest Apartments, a 50-unit affordable family community in Broomfield, Colorado.
• Hawaiian Dredging Construction CompanycoreOthersGeneral contractor building Kulana Hale project in Kapolei, Hawaii. Major Hawaiian construction firm responsible for building the $130 million mixed-use senior affordable housing development.
• Alpha Construction CompanyminorOthersGeneral contractor for RISE Apartments $32 million supportive housing project in Los Angeles. Van Nuys-based construction company building the 57-unit veterans housing complex.
• Casa Linda Development CorporationcoreStrategic or Co-development PartnerDallas-based development partner for The Heights of Edinburg $19 million, 128-unit affordable apartment community in Texas. Long-standing partnership between Casa Linda and Highridge Costa.
• SRO Housing CorporationcoreStrategic or Co-development PartnerLos Angeles-based nonprofit housing developer and co-developer of RISE Apartments. SRO Housing Corp.'s first development outside downtown Los Angeles. Anita Nelson of SRO Housing leads the partnership.
• RISE Financial PathwayscoreStrategic or Co-development PartnerFormerly Community Financial Resource Center, nonprofit CDFI organizing RISE Apartments project alongside Highridge Costa Development. Provides financial training and community development services. Has assisted nearly 100,000 residents and contributed over $14 million to local economy.

Scale indicators6 records

Recent moves6 records

Expansion highlights5 records

Broad incumbents

• WinnCompanies: Large multifamily developer, owner, and manager with substantial affordable housing portfolio alongside market-rate and mixed-income properties. Comparable to Highridge Costa's combination of development, ownership, and property management across affordable family and senior housing.
• The Related Companies: One of the largest U.S. developers of affordable and mixed-income housing, with related affordable housing arm Affordable Housing Initiatives. Comparable to Highridge Costa in scale of LIHTC-financed multifamily development, government partnerships, and national geographic reach.

Direct peers

• L+M Development Partners: Major LIHTC-focused affordable and mixed-income multifamily developer serving families, seniors, and special needs populations. Directly comparable in business model (LIHTC + tax-exempt bonds + government partnerships), customer segments, and reliance on layered public financing.
• Jonathan Rose Companies: Mission-driven developer of affordable, mixed-income, and transit-oriented multifamily housing with strong LIHTC and green building focus. Comparable to Highridge Costa's LIHTC-financed development, sustainability emphasis (Enterprise Green Communities, LEED), and family/senior resident focus.
• BRIDGE Housing: California-based nonprofit developer and owner of affordable and workforce multifamily housing, with strong presence in California and the Western U.S. Comparable to Highridge Costa's California/Western U.S. footprint and LIHTC-driven family and senior housing model.
• Mercy Housing: National nonprofit affordable housing developer and owner of multifamily rental housing for low-income families, seniors, and people with special needs. Highly comparable to Highridge Costa in affordable multifamily development and residents served, although structured as a nonprofit.
• Dominium: Top-tier affordable multifamily developer and owner focused on LIHTC-financed communities across multiple states. Comparable to Highridge Costa in affordable housing production volume, LIHTC financing expertise, and family/senior resident focus.
• Conifer Realty: Top-50 affordable housing owner and developer with multifamily portfolio across multiple Northeast and Midwest states. Comparable to Highridge Costa's top-50 ranking, LIHTC asset base, and mixed family/senior resident segments.
• USA Properties Fund: California-based affordable and market-rate multifamily developer and manager with extensive LIHTC portfolio. Comparable to Highridge Costa's California headquarters, LIHTC financing expertise, and market-rate/affordable development pipeline.
• The NRP Group: National multifamily developer with significant affordable and workforce housing portfolio using LIHTC, tax-exempt bonds, and state/local financing. Comparable in scale, layered financing approach, and target resident segments (families, seniors, special needs).

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/highridge-costa
• Instagraminstagram.com/highridgecosta

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Highridge Costa Investors, Llc