Avanath Capital Management, LLC, a private real estate investment manager and Registered Investment Adviser, has acquired River Run Senior, a 360-unit senior affordable housing community in Corona, California, which is located in Riverside County.
With this acquisition, Avanath now owns 11 properties in Southern California with 2,187 units under management in the region. River Run is the company’s second acquisition in Riverside County; the first, Woodside Senior, was acquired by Avanath in 2014. It is also Avanath’s third acquisition in Southern California in the past nine months.
“River Run Senior presented an opportunity to increase Avanath’s footprint in Southern California and in one of the top 50 best cities in America for outdoor activities, as well as to add another well-maintained and highly occupied senior community to our portfolio,” says John R. Williams, President and CIO of Avanath Capital Management. “We are very excited to acquire this affordable 55+ rental community in the city as Corona has a very limited supply of affordable senior housing. In fact, Corona has seven senior properties totaling 1,137 units, of which only four properties and 719 units are designated as low income.”
Williams adds, “While investment opportunities are difficult to find in this market, we utilized our deep understanding of Southern California to identify and complete this acquisition. Avanath’s broad footprint in the market will help us to achieve economies of scale among our portfolio of affordable communities in this region.”
While COVID-19 has significantly impacted rent collection globally and among many market rate communities, River Run has had strong occupancy and has provided consistent rental income throughout the pandemic, Williams notes.
“The property is consistently 99% to 100% occupied, has not experienced a drop in collections during the pandemic, and has an interest list of over 1,000 prospects,” says Williams. “River Run will continue to provide essential affordable senior housing in Corona and Riverside County as a whole, where there is limited supply.”
Avanath is also committed to keeping the property affordable for seniors 55 and older in the area, says Williams.
“Despite expected rises in Riverside MSA’s AMI over the next few years, Avanath has capped annual rent increases throughout its investment period at a minimal amount,” Williams explains. “This matches our ongoing mission to provide affordable housing in markets where inventory is low.”
Built in 2004, River Run consists of six three-story garden-style buildings totaling 216,684 square feet or 602 average square feet per unit. With a mix of 306 one-bedroom and 54 two-bedroom apartments, the property offers in-unit amenities including air conditioning, a dishwasher, vinyl plank flooring, walk-in closets, and private balconies/patios. Common amenities include a community center, leasing office, business center, pool, elevator service, laundry rooms in each building, and a gated entry.
The property is situated for easy access to major thoroughfares such as North Main Street/Hamner Avenue, I-15, and CA-91, which connect residents to numerous neighborhood conveniences, dining, shopping, and entertainment venues in Corona and the surrounding area. Downtown Corona, located approximately 1.5 miles from River Run, contains the North Main Corona Commuter Rail station, which is linked with Metrolink’s Inland Empire—Orange County and 91 Line, providing services to Los Angeles, Perris, San Bernardino, and Oceanside.
River Run will be managed by Avanath Communities, Inc., which also manages ten of the additional properties Avanath owns in Southern California. The company will continue to implement in-place COVID-19 initiatives at the senior community – including closed common-area amenities and hand-sanitizing stations throughout the property – as appropriate to ensure residents of River Run remain safe and healthy, Williams notes.
“As seniors are one of the demographics most at-risk of having health issues associated with the COVID-19 virus, Avanath goes above and beyond to protect residents at its senior living communities,” says Williams. “We manage 2,334 senior housing units across the country and 650 units in Southern California, and we have not had any reported cases of COVID-19 at our Southern California properties.”
Avanath plans to implement social programming at River Run, in addition to its Wellbeats partnership program, which will allow residents to exercise from home. The firm will work with its nonprofit partner, AHA, as well as the resident services coordinator to increase the level of services when safe to do so.
Avanath also plans to apply its proven property management strategy at River Run, including upgrading mechanical systems; replacing roofs, HVAC systems, and boilers; adding a maintenance shop; and installing security cameras near access gates.