Affordable housing options in the San Francisco Bay Area are far and few between. Yet an investment firm's nearly $132 million portfolio acquisition for a pair of multifamily properties is one step toward addressing the worsening shortage of options for lower-income renters.
Avanath Capital Management closed a deal in late 2022 to purchase the Bay Vista and Creekside apartment complexes in Novato, California, one of the most expensive housing markets in the country. The sale of the properties at 5 Hutchins Way and 46 Tinker Way preserves their status as affordable housing communities for renters earning 60% or less of the area's median income, a feat that helped it earn a 2023 CoStar Impact Award as judged by real estate professionals familiar with the market.
“With the acquisition of the Novato Portfolio, Avanath brings two well-located apartment communities into its San Francisco area holdings that provide housing to low-income families in the most expensive housing market in the country,” Avanath Capital Management CEO Daryl Carter recently said of the purchase. “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.”
The $131.5 million acquisition includes 297 units, pushing Avanath's Northern California portfolio to include more than 3,000 units. The Irvine, California-based firm is planning to invest in upgrades such as a clubhouse renovation, the installation of Amazon lockers, new in-unit washers and dryers as well as the addition of a dog park.
About the project: Bay Vista and Creekside, built in 2005 and 2003, respectively, were more than 98% occupied at the time of Avanath's acquisition. That underscores the steep demand for affordable housing options in the Bay Area. With their locations near mass-transit routes, as well as larger-than-typical floorplans, the properties are especially attractive among families, who also take advantage of the on-site daycare facilities.
What the judges said: "Pulling off an affordable housing project in one of the most expensive markets in the country is huge," CoStar Impact Awards Judge Matt Brown, a president for Meridian Commercial, said. Fellow judge Pauline Block, the director of marketing and development for Cornerstone Properties, added that "Avanath's multifamily acquisition is a great example of fostering and growing upon existing development in the North Bay to provide more value for the project and its residents."
They made it happen: Avanath Capital Management's Daryl Carter, Keith Harris, John Williams, Carly Stevenson and Connor Mortland were all involved in spearheading the acquisition.
