297 Marin County low-income apartments sell for $131 million
An investor in affordable, workforce and value-oriented apartments nationwide has expanded its Northern California portfolio with the purchase of two Novato complexes for $131.5 million.
An affiliate of Irvine, California-based Avanath Capital Management LLC acquired 220-unit Bay Vista at Meadow Park and 77-unit Creekside at Meadow Park on Dec. 15, 2022, according to real estate agents involved in the deal and public records. The seller, an entity tied to Walnut, California-based Shea Homes, had owned the property with both complexes since 2003.
“Based on the lack of development pipeline in the immediate area, both properties will remain as some of the highest quality affordable communities in fast-growing Marin County, serving an incredibly strong demand for years to come,” Daryl Carter, Avanath founder, chairman and CEO, said in the announcement.
The firm’s vice president of acquisitions, Connor Mortland, noted that the San Francisco metropolitan area had an area median income that’s the third highest in the U.S. and has grown at average rate of 8.79% in each of the past five years.
San Francisco’s median annual income for 2022 was $97,000–$110,850, according to the city. Marin County’s median was $151,500, according to Fannie Mae.
Avanath now manages more than 3,000 units in Northern California and over 800 in the Bay Area. The firm’s other North Bay property is Lincoln Creek, a 172-unit complex at 1395 N. Lincoln St., Dixon, acquired in April 2017, according to the website.
Both properties were 98% occupied at the time of sale. The complexes are covered by low-income housing tax credits.
Bay Vista at Meadow Park was built in 2005 on 16.4 acres at 5 Hutchins Way in Novato. It has 15 two-story buildings with two- and three-bedroom units. Amenities include a daycare center, swimming pool, spa and picnic areas.
Creekside at Meadow Park was built in 2003 on 7.81 acres at 46 Tinker Way in Novato. It has 26 two-story buidlings with two-, three- and four-bedroom units.
Avanath plans to install LED lighting and electric appliances and water heaters, and is considering the addition of chargers for electric vehicles. Planned programs include after-school programs, community forums and art classes.
In the sale transaction, CBRE represented the seller, Bay Vista at Meadow Park LP, and buyer, Avanath Bay Vista LP. Avanath purchased the properties through its Renaissance Fund and financed the acquisition via CBRE and Fannie Mae.
Jeff Quackenbush covers wine, construction and real estate. Before coming to the Business Journal in 1999, he wrote for Bay City News Service in San Francisco. Reach him at jquackenbush@busjrnl.com or 707-521-4256.
