Avanath Acquires LA Apartments for $220M

Avanath Capital Management has made one of the largest single asset transactions of the year in Los Angeles County this year, buying two multifamily properties encompassing 669 units for $220M, the latest purchase in firm’s nationwide strategy of acquiring affordable housing assets.

Northmarq arranged the sale of the Santa Rosalia and Santo Tomas Apartments in the Baldwin Village neighborhood of LA to Avanath from seller Upside Investments. According to terms of the sale, the deal allows the buyer to provide the residents a long-term affordable housing solution.

“Avanath recognized the opportunities that exist with the property as they combine market-rate and Income Restricted Affordable housing to the community. With more than one-million square feet of land, the future of this asset will serve as a model for large-scale housing in the city,” said Vince Norris, a member of Northmarq team on the transaction, in a statement.

Northmarq also secured $121M in acquisition financing for the property through Fannie Mae.

After raising more than $1B in investment capital in the past two years, Irvine-based Avanath has been on a mission this year to increase its affordable housing portfolio. The company is focused on investing in underserved markets across the country.

The Baldwin Village multifamily deal was the firm’s sixth in Southern California this year, including its $11M purchase of The Palms, a 44-unit income-restricted multifamily in Yorba Linda.

Avanath. Earlier this month, in an off-market transaction, the company bought six housing communities in Northern California for $181.6M. The portfolio included four multifamily and two affordable seniors housing communities encompassing 1,032 units, all of them in the Sacramento area.

With the acquisition, Avanath’s portfolio in the Sacramento market now includes 12 properties encompassing 1,854 units.

The properties acquired in the $181.6M deal included Anton Arcase at 2134 Butano Drive in Sacramento; Norden Terrace at 3685 Elkjorn Blvd. in North Highlands; The Ridge at 8151 Civic Center Drive in Elk Grove; and Whitney Ranch at 711 University Ave. in Rocklin.

The senior housing assets included Corsair Park Senior at 6920 Watt Ave. in North Highlands and Hurley Creek Senior at 4275 El Centro Road in Sacramento.

The six properties were all built between 2008 and 2017 utilizing low-income housing tax credits through the California Tax Credit Allocation Committee and with bond financing. Each of the properties features a central clubhouse, fitness center and pool.

Avanath is an investment firm that acquires, owns, renovates, and operates affordable, workforce, and value-oriented apartment communities across the U.S. The company’s website notes that families with annual incomes of $30,000 to $80,000 represent the largest segment of the rental housing market.