Avanath Capital Administration, a personal actual property agency that invests in inexpensive and workforce housing properties all through the U.S., has introduced the acquisition of a senior inexpensive housing group positioned in Sterling, Virginia and a historic inexpensive household group in San Jose, California, comprising 209 models in complete. The properties had been bought for $44.65 million.
The acquisitions symbolize the agency’s continued growth into new markets in addition to its capability to appreciate economies of scale in markets the place it presently owns belongings, in response to John Williams, President and CIO of Avanath Capital Administration.
“As a number one proprietor and operator of inexpensive housing communities in key markets all through the nation, Avanath is adept at figuring out markets with robust inhabitants and job progress the place alternative exists to supply engaging and inexpensive residence communities for residents all through the world,” says Williams. “Northern Virginia, the place we now personal 4 belongings, and Northern California, the place we now personal eight belongings, are two areas that present nice potential for continued financial progress and inexpensive housing demand, in addition to favorable risk-adjusted returns for our buyers.”
Avanath has bought the next properties:
Cascades Village in Sterling, Virginia
Avanath Capital Administration has acquired Cascades Village, a 150-unit senior inexpensive housing group in Sterling, Virginia, for $27.15 million.
Sterling, Virginia is positioned in Loudon County, one of the crucial prosperous counties within the Metro Washington D.C. space.
“Avanath was interested in Sterling as a result of dwelling pricing and present market-rate product out there are unaffordable to decrease earnings renters, leading to a major demand for inexpensive rental models within the space,” says Williams.
Situated roughly 26 miles northwest of Washington D.C., Cascades Village offers the agency with the chance to extend its footprint within the Washington D.C. area and add a high-quality senior group to its portfolio, notes Williams.
“Cascades Village is positioned solely 2.5 miles away from our inexpensive group, Acclaim at Sterling, and this proximity will enable for speedy operational efficiencies upon acquisition,” says Williams.
Along with Cascades Village and Acclaim at Sterling, Avanath additionally owns two different properties in Virginia: Acclaim at Ashburn in Ashburn and Alexandria Station in Alexandria. The agency now owns a mixed complete of 673 models in Virginia.
Inbuilt 2001, Cascades Village is a three-story residence group that’s restricted to residents ages 55 and older and is 98.7 p.c occupied.
Located on 5.65 acres, Cascades Village options 180 floor parking areas and group facilities together with 24-hour emergency upkeep, a magnificence salon, billiards, controlled-access entry, elevator service, a health middle, a gazebo, a hospitality suite for company, a library, a multi-purpose leisure room, on-site laundry services, a solarium, an out of doors patio with charcoal grills, and a screened-in porch.
Avanath is planning to implement its value-add technique to the property, which incorporates including tenant wellness companies and senior exercise planning and enhancements to the widespread areas and amenity areas.
Cascades Village is positioned at 46565 Harry Byrd Freeway in Sterling, Virginia.
Classic Tower in San Jose, California
Avanath Capital Administration has additionally acquired Classic Tower, a 59-unit historic inexpensive housing group in San Jose, California, for $17.5 million.
The San Jose MSA has undergone vital progress during the last a number of years, which has positioned upwards stress on housing costs and residential affordability.
“There’s a demonstrated want for properties that present essential inexpensive housing to qualifying residents within the San Jose market,” says Williams. “Whereas Classic Tower is Avanath’s 13th acquisition in Northern California, it’s our first acquisition in San Jose. This group presents a chance to amass a historic, high-rise residence constructing that gives housing to low-income households in one of the crucial costly markets within the nation and the potential for robust returns for our buyers.”
Inbuilt 1928 within the coronary heart of Downtown San Jose and renovated in 1987 and 2004, Classic Tower is a totally occupied 12-story mid-rise constructing with a median of 559 sq. ft per unit. The group options in-unit facilities together with a self-cleaning oven, dishwasher, and rubbish disposal. Two penthouse models on the 11th ground even have massive non-public balconies. Along with 76 parking areas on the primary ground of the adjoining property to the north, the property options group facilities together with two elevators, secured entry, on-site laundry facility, courtyard, and extra space for storing.
Attributable to its age, historical past, and placement, Classic Tower has been designated as an historic metropolis landmark in San Jose. Initially constructed as a medical and dental constructing, the property was transformed to residences and business house in 1987 using low-income housing tax credit by way of Part 42, which went into impact the yr prior. San Jose First United Methodist, a church based in 1847 that’s positioned adjoining to the property, participated in a second LIHTC refunding of Classic Tower in 2004, which included enhancing residential models and retail areas, seismic upgrading, and a brand new courtyard and train facility.
The property incorporates distinctive historic options together with authentic artwork painted on partitions and wooden on numerous flooring, carved wooden banisters in stairwells, two authentic 2,000-gallon water-storage tanks from 1928 within the upkeep store, and an authentic medical incinerator positioned within the supervisor’s workplace.
Avanath is planning to take a position capital into the property for continued enhancements to the models and exterior. As well as, the agency is implementing a free program for residents the place it partnered with Wellbeats, a health app that provides numerous digital lessons, to all residents of Classic Tower, which can enable residents to train at dwelling in the course of the COVID-19 pandemic.
Along with Classic Tower, Avanath presently owns seven different properties within the Northern California market, together with Geneva Pointe and Renwick Sq. in Elk Grove, Lincoln Creek in Dixon, Oak Village in Oakland, Sierra Creek in Antelope, and Sutter Terrace and Woodcreek Terrace in Roseville. The agency now owns a complete of 998 models in Northern California.
Classic Tower shall be managed internally by Avanath’s property administration group Avanath Realty Inc. The property is positioned at 235 E. Santa Clara Road in San Jose, California.