Investment Summary
831 Water Street
Mixed-Income — New Construction · Santa Cruz, CA
ndc-ai · Novin Development
August 20, 2026
August 20, 2026
- Units
- 140
- Stories
- 5
- Gross SF
- 154,000
- Stabilized NOI
- $1,407,184
Total Dev Cost
$100.8M
Cost / Unit
$720,275
Yield on Cost
1.4%
Min DSCR
1.20
Site location
- Primary address
- 831 Water Street
- City / State
- Santa Cruz, CA
- Latitude
- —
- Longitude
- —
Santa Cruz, CA
Approx. site
Sources
| 4% LIHTC Equity (R4 Capital) | 34,437,247 |
| State Tax Credits | 10,106,681 |
| Permanent Loan (CalHFA) | 37,800,826 |
| CalHFA MIP | 4,000,000 |
| Sponsor Loan (Novin Investments) | 6,450,000 |
| Deferred Developer Fee | 6,393,943 |
| HTSV Predevelopment Loan | 2,399,000 |
| Other Sources | 1,649,732 |
| Total Sources | 103,237,429 |
Uses
| Land Acquisition (Novin Investments) | 12,000,000 |
| Total Hard Costs | 70,500,000 |
| Hard Cost Contingency | 4,500,000 |
| Total Soft Costs | 6,800,000 |
| Financing Costs | 3,200,000 |
| Developer Fee (Cash) | 4,680,564 |
| Capitalized Reserves | 1,800,000 |
| Total Uses | 103,480,564 |
Investment thesis
831 Water Street is a 140-unit mixed-income — new construction development in Santa Cruz, CA, capitalized with 4% LIHTC, State Tax Credits, CalHFA MIP, PBVs (64 units). Total development cost is $100.8M ($720,275 per unit). Stabilized net operating income is projected at $1,407,184 on $2,269,651 of effective gross income, underwritten to a minimum 1.20x debt-service coverage covenant at a 1.4% yield on cost. The capital stack is led by Permanent Loan (CalHFA) at $37,800,826.