Avanath Capital Management has acquired a 44-unit family-oriented multifamily community in Yorba Linda, California, for $11.1 million in an off-market transaction.
Yorba Linda Palms serves qualifying residents earning between 30% and 50% of the area median income (AMI), delivering needed affordable housing for low- and middle-income families in an area of Orange County where market-rate rents are high and demand is strong, according to Daryl Carter, founder, chairman, and CEO of Avanath,
“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,” says Carter. “Known for its historic charm, Yorba Linda is considered one of the most affluent cities in Orange County, which boasts the sixth-highest AMI in California and the highest AMI in Southern California at $119,000.”
The Palms marks Avanath’s fifth purchase in Southern California and its fourth in Orange County within the last 12 months. The firm recently acquired St. John’s Manor, a 36-unit affordable senior housing community in Costa Mesa; The Overlook at Anaheim Hills, a 261-unit senior housing community in Anaheim; and The Grove Senior, an 85-unit senior housing community in Garden Grove. Avanath now has 2,267 units under management in Southern California, which provides the company with economies of scale in the region, according to John R. Williams, president and chief investment officer at Avanath Capital Management.
“By leveraging broker relationships and practicing proactive communication with owners and developers, we were able to acquire an off-market asset in an area where the affordable housing supply is limited and there is a significant barrier to entry for both developers and would-be homeowners,” adds Williams.
The property was purchased from Yorba Linda Family Partners, utilizing equity from Avanath’s recent Fund IV and Fannie Mae debt coordinated by Berkadia.
Built in 2006, The Palms is located a half-mile from the Richard Nixon Presidential Library and within walking distance from a variety of retail and restaurant options. The property has been consistently occupied at 100% and maintained rent collections during the COVID-19 pandemic.
Avanath plans to continue several in-place social impact programs for residents, including classes in financial literacy, English and writing, and computer proficiency. COR Community Development Corp. will work as Avanath’s nonprofit partner in the ownership structure and provide social services to residents. Additional programs will be incorporated based on the community’s specific needs.
The Palms consists of five two-story garden-style residential buildings featuring eight two- and 36 three-bedroom units, an office, and a clubhouse and resident center. In-unit amenities include air conditioning and walk-in closets, while community amenities include a club room, a tot lot and playground, a courtyard, on-site parking, and central laundry facilities.
