A Southern California investment firm has doubled down on its affordable housing holdings in the Sacramento region.
Irvine-based Avanath Capital Management LLC announced Thursday that it had completed the purchase of a $181.6 million local affordable housing portfolio. The six properties include four multifamily properties and two senior living properties in Sacramento, Elk Grove and Rocklin.
“As we expand affordable housing options in cities where demand is robust and supply is lacking, we view Sacramento as an ideal investment target,” Avanath President and Chief Investment Officer John R. Williams said in a statement. “The average rental rate in Sacramento has increased by 12% over the past year, and the gap between market-rate and affordable rents in the area has widened considerably, increasing the potential for ongoing renter demand for high-quality budget-friendly apartments in this market.”