Sunday, June 18, 2017

Avanath Capital Management Increases Stake in Sacramento; Acquires Three Affordable Housing Communities for $56.5 Million

Geneva Pointe Apartments, Elk Grove, CA

SACRAMENTO, CA– Avanath Capital Management, LLC, an institutional fund manager that specializes in affordable and workforce housing investments, has acquired an affordable housing portfolio of three apartment communities totaling 468 units in Sacramento for $56.5 million.

This acquisition nearly doubles Avanath’s footprint in this market, bringing its total concentration of units to 1,034 apartment homes in the Sacramento region.

“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.

John R. Williams
“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 percent last year. This surge in market-rate rents is placing enormous pressure on renters and driving demand for affordable housing throughout the region.”

Williams notes that a regional migration is underway as the high cost of living in the Bay Area drives renters to the surrounding Sacramento suburbs in search of affordability.

“While still an affordable alternative to the Bay Area, Sacramento is now seeing rapid rent appreciation and not enough supply of quality affordable housing to meet current demand,” continues Williams. 

“This acquisition will allow us to preserve affordability in one of the fastest rent-growing markets in the country, while also amassing economies of scale by bringing our total Sacramento portfolio to over 1,000 affordable units.”

Built in 2005 and 2006 under the Low Income Housing Tax Credit program, the three-building portfolio was 98.5 percent 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.

For a complete copy of the company’s news release, please contact:

Katie Kea / Jenn Quader
Brower, Miller & Cole
(949) 955-7940

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