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| 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.
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| 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
kkea@BrowerMillerCole.com
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