YORBA LINDA, Calif. — After raising more than $1 billion in investment capital, Avanath Capital Management looks to expand its affordable housing portfolio.
The Orange County-based affordable housing developer and operator recently purchased a 44-unit income-restricted apartment in Yorba Linda for $11 million, following the company's premise of buying a quality affordable housing product in high-quality areas.
It was their fifth affordable housing acquisition in Southern California in the past year and a half.
"It's these high-end areas with good school districts that need a lot of housing for lower-to-middle-income workers," said John Williams, president and chief investment officer at Avanath, to Spectrum News. "This allows families that may not necessarily be able to afford to live in Yorba Linda an opportunity to be there. This could be life-changing."
"This acquisition aligns with our strategy of investing in affordable housing in underserved markets throughout the country, where finding budget-friendly housing is challenging to many families," said Daryl Carter, the CEO of Avanath, in a statement.
The acquisition comes as Williams said Avanath Capital raised more than $1 billion of investment capital to acquire affordable housing during the coronavirus pandemic. Investors, about half of whom are from Europe, are looking for safe and sturdy investments.
"They understand affordable housing and regulated housing," said Williams. "They like the durability and defensive nature of affordable housing."
And there's no shortage of demand for income-restricted housing.
"I always ask investors, 'How would you like to invest in a product that has unlimited demand and limited supply?'" said Williams. "We're always full. People value where they live."
Avanath manages more than 100 properties and 15,000 units across 14 states and 53 cities.
Aside from the Palms, the company has acquired four other affordable housing properties in Southern California since 2021.
In April, Avanath acquired St. John's Manor, a 36-unit affordable senior housing community in Costa Mesa, and The Overlook at Anaheim Hills, a 261-unit senior housing community in Anaheim.
In October 2021, the company purchased River Run Senior, a 360-unit senior affordable housing property in Corona, for $65 million.
In February 2021, the company purchased The Grove Senior, an 85-unit senior housing community in Garden Grove.
Avanath officials said they have more than 2,200 units under management in Southern California.
Built in 2006, the Palms at 18542 Yorba Linda Blvd. is about half a mile from the Richard Nixon Presidential Library.
The property consists of five two-story garden-style residential buildings featuring eight two-bedroom units, 36 three-bedroom units, a single-story office, a clubhouse and resident center.
Avanath officials said the property has been consistently occupied at 100% and maintained rent collections during the COVID-19 pandemic.
Like many of their other properties, Williams said they plan to partner with COR Community Development Corp. and continue providing residents with social services and social impact programs on the premises.