Avanath Enters Orange County With $20M Senior Housing Buy

A $12.5 million Fannie Mae loan backed the sale of the 85-unit fully affordable property.
The Grove Senior Apartments

Avanath Capital Management LLC has expanded its footprint with the acquisition of The Grove Senior Apartments, an 85-unit fully affordable community in Garden Grove, Calif. Meta Housing Corp., the property’s original developer, sold the senior community in a transaction valued at $19.9 million.

According to Yardi Matrix data, the trade was subject to a $12.5 million Fannie Mae loan, provided by Prudential Financial. The 10-year debt bares an annual interest rate of 2.6 percent.

At the time of the sale, the four-story building was fully occupied. Opened in 2007, the garden-style one- and two-bedroom asset offers amenities such as a fitness center, a clubroom and laundry facilities.

Located at 12721 Garden Grove Blvd., just off Route 22 and adjacent to Garden Grove Hospital and Medical Center, the 1.4-acre site is positioned 2 miles west of Interstate 5. Surrounded by several shopping centers, the property is roughly 30 miles from central Los Angeles, while a bus stop is just in front of the site.

Avanath’s portfolio comprises nine communities in the Southern California area. The current deal marks the firm’s entry in the Orange County market. Last November, Avanath expanded to the Boston metro market with the purchase of a 207-unit workforce housing property in Mattapan, Mass.

Last April, Meta Housing broke ground on another affordable community in Orange County. Developed in a joint venture with Western Community Housing, the $42 million, 65-unit project is slated for completion this fall.