The Small Space Marketplace

List Your Space

Find Space

Home About Us Executive Subscriber Membership RENTV Conferences Newsletter Contact Us Advertise
March 29, 2024
 Search RENTV
   Go!
 The REview
 News
News Home Page
Southern California
Northern California
Pacific Northwest
Texas/Southwest
Retail
Multifamily
Financing
Prop. Management
Archives
Press Releases
 R. E. Marketplace
Service Providers
JobWorks
Property Spotlight
 RENTV  Conferences
Subscriber Login:
  
Email      
    Go!
Password      
Forgot Password?



HOME PAGE NEWS
Printer-friendly Version   Email an Associate
Avanath Capital Management Spends $56.5 Mil on Sacramento Res Portofolio

6/19/17

Avanath Capital Management LLC has acquired an affordable housing portfolio of three apartment communities totaling 468 units in Sacramento for $56.5 mil ($121k/unit). The acquisition nearly doubles Avanath’s footprint in the market, for a total of 1,034 units in the Sacramento region.

Geneva Pointe, Elk Grove
Geneva Pointe, Elk Grove
“Sacramento is one of the hottest real estate markets in the nation right now and is experiencing explosive growth,” asserts John Williams, President and Chief Investment Officer of Avanath. “The market has made a tremendous comeback since the recession and leads the nation in highest annual effective rent growth, with rental increases exceeding 10.5% last year. This surge in market-rate rents is placing enormous pressure on renters and driving demand for affordable housing throughout the region.”

Built in 2005 and 2006 under the Low Income Housing Tax Credit program, the three-building portfolio was 98.5% occupied at acquisition and of relatively new vintage, providing strong in-place cash flow and an opportunity to add value through minimal capital improvements, according to Williams.

The portfolio consists of a diverse range of affordability types, including senior housing, family housing, and mixed-income housing, making it well-positioned to cater to different age and income demographics. In addition, the properties offer large units averaging 922 sf in size and boast a unit mix of one-, two-, and three-bedroom options.

Planned renovations include upgrading exterior paint, installing LED lighting throughout the portfolio to optimize energy efficiency, revitalizing some common areas, and addressing deferred maintenance items, among others. Social services at each property include after-school tutoring programs, fitness classes, computer literacy courses, and more.

Avanath acquired the three properties from a repeat seller, an affordable housing developer, in this off-market transaction. The portfolio includes:

• Geneva Pointe - Comprised of 152 affordable units, this community serves families earning between 50 and 60 percent of AMI. The property includes a clubhouse, business center, fitness room, pool, and detached parking garage, and offers social services such as after-school programs. Located at 8280 Geneva Pointe Drive in Elk Grove, the second largest city in the greater Sacramento region, the apartment complex offers a short commute to many employers in the education, healthcare, distribution, and professional services industries.

• Lincoln Creek - This mixed-income community comprises 172 apartment units: 95 affordable family units, 48 affordable senior units, and 29 market-rate units. Community amenities include a clubhouse with a business center, fitness room, pool & spa, separate community center dedicated entirely to seniors, a laundry room, and detached garage parking.
• Lincoln Creek is located at 1395 N. Lincoln Street in Solana County city of Dixon, which is currently experiencing strong population growth and economic expansion. Employment has grown by 2.8 percent since December 2016, with the strongest gains in manufacturing, financial services, leisure and hospitality.

• Sierra Creek - Encompassing 144 units, Sierra Creek is an affordable senior housing community serving seniors earning 50 to 60 percent of AMI. The property places a heavy emphasis on social services, including educational classes, transportation services, and activities such as monthly potlucks, game nights, and community-oriented events. Avanath plans to continue providing these services to keep its senior residents active and engaged, according to Williams. Located 4500 Elverta Road in Antelope, Sierra Creek benefits from favorable demographics and market fundamentals. No new multifamily construction is underway in Antelope, making this a supply-constrained market with limited competition and high demand. In fact, the waitlist for this property includes over 200 applicants.






Return to the Archive page


 


 


 


 
 



Home | About Us | Newsletter | Contact Us | Executive Subscriber Membership | Executive Subscriber Home | Advertise
Southern California | Northern California | Pacific Northwest | Southwest | Retail | Multifamily | Financing | Property Management
Archives | Press Releases | Service Providers | JobWorks | Property Listings

Copyright © 2024 by RENTV, All Rights Reserved
Website designed by Regency Web Services, Inc. and powered by Lightning Media