Avanath Expands NorCal Footprint with $131.5M Novato Purchase

Private real estate firm Avanath Capital Management has acquired the Novato Portfolio, comprised of two affordable rental apartment properties in Novato, CA. Avanath purchased the assets from Shea Homes for $131.5 million with equity from the firm’s Renaissance Fund and debt financing through CBRE and Fannie Mae.

“There is a significant need for affordable housing in the greater San Francisco market,” said Avanath CEO Daryl Carter. “There is a genuine affordable housing crisis, and we are determined in our mission to contribute to its resolution.” Carter adds this is Avanath’s 17th and 18th acquisitions in the market.

The portfolio comprises 297 units at Bay Vista at Meadow Park (pictured) and Creekside at Meadow Park, built in the early-to-mid 2000’s using Low Income Housing Tax Credit. Both properties are over 98% occupied and provide housing for residents at rents between 30% and 60% AMI.

Avanath plans strategic upgrades and implementation of ESG initiatives at the communities, and will install LED lighting and electrical appliances. In addition, the firm will implement after school programs, community forums and arts and crafts classes.

Image courtesy of CBRE