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| Rivers Senior, a 120-unit affordable senior housing community located at 705 Dorothy Adamo Lane, West Sacramento, CA |
WEST SACRAMENTO, CA – Avanath Capital Management LLC, a multifamily owner and operator that primarily focuses on affordable and workforce housing, announces that it has acquired Rivers Senior, a 120-unit affordable senior housing community located in West Sacramento, California, for $19 million, according to Avanath’s Founder, Chairman and CEO Daryl Carter.
“Housing
affordability in many West Coast markets like Sacramento is notoriously
low—especially for seniors, many of whom are living on fixed incomes,” says
Carter.
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| Daryl J. Carter |
“Sacramento is one of the fastest-growing markets in the country, as evidenced by 12% rent growth over the last 12 months and average home price increases of 8.12% per annum over the last five years.
"In fact,
affordability is seen as Sacramento’s biggest housing-market challenge.
Given the current dynamics of rising market-rate rents, elevated cost of
living, and inflation, this transaction is especially significant and comes at
a critical time.”
The property,
Avanath’s 19th acquisition in Northern California and its 13th in
the greater Sacramento area, was acquired in an off-market transaction with the
seller, from whom Avanath has previously purchased numerous Sacramento-based
multifamily assets, notes John R. Williams, President and CIO at Avanath
Capital Management.
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| John R. Williams |
“Opportunities to own a 98%-occupied senior community like Rivers Senior in a strong location are rare,” says Williams.
“By drawing upon our
deep and longstanding relationships in the Sacramento market, we were able to
complete this transaction and bring our total number of units under management
in the Greater Sacramento area to 1,974.
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| Keith Harris |
"This allows us to leverage economies of scale while expanding the availability of high-quality affordable apartment homes to the seniors who need it most.”
Constructed in 2008, Rivers Senior was built
utilizing the California Tax Credit Allocation Committee’s LIHTC and with bond
financing via multiple agencies. Additionally, the assets benefit from the
state of California’s Welfare Tax Exemption.
The community features 96 one-bedroom and 24
two-bedroom units, 60 of which are reserved for residents at 50% of area median
income (AMI) and 59 units of which are reserved for residents at 60% of AMI.
The property consists of nine two-story
buildings situated on 4.80 acres, located approximately 2.5 miles west of
downtown Sacramento, the main employment center for the city of Sacramento.
West Sacramento offers many resident amenities, according to Keith Harris, Executive Vice President of Investments for Avanath.
“West Sacramento is
known for its agricultural industry and features six urban farms, which are a
highlight attraction for seniors,” says Harris.
“These farms work
directly with local community members, including residents at Rivers Senior, to
provide healthful food and nutrition education, an added benefit.”
“Efficient energy
management is a key to our successful strategy, ultimately benefiting our
residents, investors, and the greater community,” adds Harris.
“In fact, Avanath
was recently recognized as an ENERGY STAR ®
Partner of the Year for the firm’s achievements in this space, including
reducing our energy use intensity by over 35% from 2021 to 2022.”
CONTACT:
:
Elisabeth Manville
The Smart Agency
949-438-6262
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