Friday, October 7, 2016

Avanath Capital Management Expands Portfolio

The Lodge at Peasley Canyon, Seattle, WA

SEATTLE, WA -– Avanath Capital Management, an institutional fund manager that invests in affordable and workforce housing, has acquired two workforce housing assets including The Lodge at Peasley Canyon, a 339-unit property in Seattle, Washington, and Harbor Pointe, a 34-unit property in Ft Lauderdale, Florida, for a total of $84.8 million. 

Avanath purchased Harbour Pointe with joint-venture partner Oak Tree Residential.

“Each of these assets presents an opportunity to leverage market growth while also preserving much-needed workforce housing in cities that have experienced some of the highest rent increases in the nation,” says John Williams, President and Chief Investment Officer of Avanath.

John Williams
A recent Axiometrics report ranked Seattle as the third highest market for annual effective rent growth in the United States, while a local news report cites continued year-over-year rent increases in Broward County, Florida.

“Amidst this rent growth, there is a severe shortage of quality workforce housing that caters to middle-income families in major urban cores throughout the nation,” continues Williams. 

“Our investment strategy is to capitalize on this underserved market sector by acquiring and repositioning well-located workforce housing assets in high-rent markets in order to generate attractive risk-adjusted returns, while also providing workers with high-quality housing they can afford.”

Since 2008, Avanath has acquired and managed more than 41 affordable and workforce housing properties totaling over 7,000 units across the nation, targeting assets near major employment hubs in supply-constrained markets.

The two workforce housing investments recently acquired by Avanath include:

The Lodge at Peasley Canyon

Avanath acquired The Lodge at Peasley Canyon, a 339-unit workforce housing community in Seattle, for $73.3 million.

“Seattle has recently emerged as one of the fastest-growing metros in the nation, making this a highly attractive market for multifamily investors,” says Williams. “The region is quickly gaining ascendancy as one of the premier tech hubs in the Pacific Northwest, with a demographic profile and rent growth similar to that of the Bay Area. Situated in this thriving tech corridor,

Haarbor Pointe. 2201 Southeast 18th Street
Fort Lauderdale, FL
“The Lodge at Peasley Canyon is uniquely positioned to cater to middle-income tech support workers that are unable to afford new luxury apartments or other expensive options.”

Williams notes that Seattle is home to Fortune 500 companies such as Amazon, Starbucks, Microsoft, and Nordstrom, which has fueled a luxury apartment construction boom in recent years.

Harbor Pointe

Avanath and Oak Tree Residential have acquired Harbor Pointe, a 34-unit workforce housing community in Fort Lauderdale, Florida, for a total consideration of $11.5 million.

“Harbor Pointe is an extremely well-appointed community that is also one of the most affordable apartment complexes on the ocean side of Fort Lauderdale. The property is well-positioned to attract workers in the hospitality and cruise industries,” says Williams, who notes that tourism is the market’s second largest industry, employing more than 180,000 people throughout the county.
 For a complete copy of the company’s news release, please contact:

Katie Kea / Jenn Quader
Brower, Miller & Cole
(949) 955-7940

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