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 a total consideration of $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. “Sacramento is one of the fastest-growing markets in the country, as evidenced by 12 percent rent growth over the last 12 months and average home price increases of 8.12 percent 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.
“Opportunities to own a 98 percent-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. 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 percent of area median income (AMI) and 59 units of which are reserved for residents at 60 percent 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.”
The multifamily community offers unit amenities including dishwashers, private balconies/patios, garbage disposals, and in-unit washer/dryer connections. Common amenities include a clubhouse, leasing office, business center, library, fitness center, heated swimming pool, community garden, laundry facilities, and gated entry.
Avanath will manage the property internally and plans to implement several capital improvements at the property, including replacing the roofs and boilers. The firm will also incorporate ESG principles aligned with its mission, including upgrading the property with LED lighting and completing additional energy-saving projects.
“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 percent from 2021 to 2022.”
Social impact programming aligned with residents’ needs is underway, and the company is providing all residents access to Wellbeats, a fitness app that offers various virtual classes and allows residents to exercise at home. In addition, Avanath is committed to operating the community transparently in a manner that fosters, cultivates, and preserves a culture of diversity, equity, and inclusion.
Rivers Senior is located at 705 Dorothy Adamo Lane, West Sacramento, California 95605.
