Avanath Buys Affordable, Senior Housing Portfolio for $182M

Avanath Capital Management has acquired a six-community affordable and senior housing portfolio in the Sacramento area for $182M in an off-market recapitalization deal.

The properties had previously been owned by a joint venture of Pacific Housing and St. Anton Capital, with ownership now transferring to a joint venture of Avanath and Pacific Housing, according to Yardi Matrix data.

Avanath Realty will manage the properties, which encompass 1,032 units. The company said it plans to upgrade the housing portfolio with sustainable and social service improvements.

The affordable housing properties include the Anton Arcade in Sacramento; Norden Terrace in North Highlands; The Ridge in Elk Grove; abd Whitney Ranch in Rocklin. The senior housing properties are Corsair Park Senior in North Highlands and Hurley Creek Senior in Sacramento.

Under the terms of the recapitalization, CRBE Capital Markets facilitated the transaction of Norden Terrace with a $23.6M Fannie Mae loan. Whitney ranch was recapitalized with a $27.7M sale, which was funded by a $15.7M CBRE loan originated by CBRE.

Hutley Creek was recapitalized with a $30M sales, funded by a $15.7M acquisition loan originated by CBRE; and CBRE facilitated the transaction of Corsair Park Senior with a $10.3M Fannie Mae loan.

The overall occupancy rate of the portfolio, which was built between 2008 and 2017, is 98%. Avanath said it would implement energy-saving updates at the properties, each of which features a clubhouse, business center, fitness center and pool.

The company also plans to provide residents with free access to Wellbeats, an app featuring virtual fitness classes.

The housing portfolio purchase brings Avanath’s senior housing holdings in the area to 12 properties encompassing 1,854 units.

In May, Avanath Capital Management acquired a two-asset affordable housing portfolio in Brooklyn, NY for $315M. The company bought the 303-unit 38 Sixth and the 298-unit 535 Carlton in Brooklyn from Greenland USA. Out of the total of 601 units, 37% were reserved for residents earning between 40% and 100% of the area’s median income.

Built in 2017, 38 Sixth offers a mix of studios and one- to three-bedroom units ranging from 498 to 1,163 SF. The 25-story property includes about 23K SF of office space and 6K SF of retail.

The 38 Sixth and 535 Carlton properties are part of the Pacific Park New York Development, one of the largest projects in NYC; when completed, the project will include 15 residential buildings and more than 7.3M SF of residential, commercial and retail space, as well as eight acres of public open space.

Avanath’s NYC portfolio includes more than 1,000 units across 28 properties, primarily in Brooklyn. In March, the company secured $536M for its open-ended affordable housing fund.