Avanath Capital Spends $96MM on 236-unit Crescent Cove Apartments in San Francisco

Crescent Cove, Avanath Capital Management, Chinatown Community Development Center, Related California, Mission Bay, San Francisco, Berkeley, San Jose, Sacramento

By Vladimir Bosanac

As the multifamily market across the region continues to regain all the footing it lost at the start of the global COVID-19 pandemic, investors are looking for ways to grow their presence in a region where demand seems to always outstrip supply. In the affordable housing arena, that disparity may even be more pronounced, prompting one Southern California investor to make a $96 million bet on a 236-unit Crescent Cove apartments property in San Francisco. Irvine-based Avanath Capital Management purchased the property for roughly $407,000 per unit from a partnership between Relate California and Chinatown Community Development Center, which developed and completed the property in 2007.

Crescent Cove is located at 420 Berry Street in San Francisco, and the property is considered also to be a transit-oriented development. It was designed by David Baker & Associates, according to Related’s website, and constructed by Nibbi Brothers General Contractors. The property features a mix of studio, one-bedroom and two-bedroom units. 

The property is located in the master-planned community of Mission Bay in San Francisco, adjacent to a waterfront park, according to the property’s web page on Related’s website. The 236-unit development maximizes an irregularly shaped site defined by the curve of the Caltrain railroad tracks. The unique design of the curved building adjacent to the tracks substantially reduces the sound from the slow-moving commuter rail cars, states Related. The on-site amenities include a 3,000-square-foot community center with a fitness room and an outdoor barbecue area.

Avanath is an investment firm that acquires, owns, renovates, and operates affordable, workforce and value-oriented apartment communities across the U.S., according to the company’s website. The company owns 102 properties in 14 states across 53 cities. In April of this year, Avanath announced that it raised $536 million in equity commitments for its latest open-ended affordable housing fund.

The company has been an active buyer in the Northern California market in recent years. According to previous reporting by The Registry, Avanath spent $25.3 million to acquire Acton Courtyard, a 71-unit mixed-use affordable housing community with 7,013 square feet of ground-floor retail, located in Berkeley in the third quarter of 2021. A year earlier, the company spent $17.5 million to buy Vintage Tower, a 59-unit historic affordable housing community in San Jose. In 2017, the company also spent $56.5 million to buy 468 units in Sacramento across three properties. 

In April of 2021, Daryl J. Carter, the founder, chairman and CEO of Avanath Capital Management was elected to the Board of Directors of San Francisco-based BRIDGE Housing, a leading nonprofit developer, owner and manager of affordable housing on the West Coast.

West Coast Commercial Real Estate News