Avanath Capital Strikes Again With $88M SoCal Senior Apartments Trade

The firm picked up the 261-unit Overlook at Anaheim Hills, its second such purchase this year

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Multifamily trades in Southern California continue to drive the market as high demand persists through the tail end of the pandemic.

Private investment firm Avanath Capital Management acquired the 261-unit senior apartment community Overlook at Anaheim Hills in Anaheim for $87.5 million. It’s the second senior housing community that Irvine-based Avanath has acquired in Orange County in less than 90 days. In February, the firm announced it acquired The Grove Senior Apartments for nearly $20 million.

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Overlook was sold by Seattle-based Security Properties, which last purchased the property for $52 million in 2015, property records show. Financial documents show $3.4 million in net operating income for 2020. 

Daryl Carter, founder and CEO of Avanath, said that vacancy averaged 2.51 percent at Overlook from 2017 to 2019, and 1.68 percent over the last 12 months. Avanath also plans to make capital improvements to the property, including renovating the clubhouses and community spaces, and adding a dog park.

Built in 2001, the nearly fully occupied Overlook property consists of seven garden-style buildings with an average unit size of 751 square feet. Located at 145-235 South Festival Drive, the property is located adjacent to Anaheim Hills Festival shopping center, which contains a movie theater, grocery stores, shopping and restaurants. 

“Overlook at Anaheim Hills is a senior community, which is a very attractive property as the aging Baby Boomer generation is continuing to downsize and look for quality housing options that are also affordably priced,” Carter said in a statement. “In fact, the Anaheim market has an exceedingly limited senior housing supply and increasing call for units.”