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| John Williams |
Chicago, IL and Edgewater, MD — Avanath Capital Management, LLC,
a private real estate investment manager and Registered Investment Adviser, has
purchased three affordable housing communities with a combined total of 317
units in Chicago and Maryland.
The assets were
acquired for a total of $55.05 million.
These acquisitions
bring the company’s total holdings in Chicago to 1,063 units and its total
holdings in the Washington DC metro area to 1,169 units, according to John
Williams, President and CIO at Avanath Capital Management.
“We have been
extremely active this year, rapidly expanding our AUM throughout many major
markets across the nation,” says Williams.
“We target markets
where there is tremendous pent-up economic growth, exceptionally strong job and
population growth, and an increasing need for affordable housing. Both Chicago
and the DC metro area meet these qualifications.”
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| Ben Finley |
Williams explains that
affordability is a major concern in many markets across America as home prices
and rents continue to rise while wages remain stagnant.
“Our investment
strategy is founded on preserving affordability for residents in some of the
nation’s most cost burdened areas while simultaneously creating value for our
investors,” he says.
“Through our proven
asset management strategy, we will make capital improvements to these newly
acquired properties that will enhance value for investors and keep rents low
for residents.”
Avanath’s asset
management strategy includes value engineering renovations, incorporating
sustainable features, and improving operational efficiencies through its
integrated property management and the firm’s niche focus on affordable
housing.
Avanath purchased
the following properties:
156-Unit
Scotland Yard Apartments in Chicago
Avanath Capital
Management has acquired Scotland Yard Apartments for $28.3 million.
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| Scotland Yard Apartments, a 156-unit transit-oriented, apartment community at 4215-4261 Broadway Street, Chicago, IL |
Located at 4215-4261 Broadway Street in the
Buena Park residential neighborhood in the Belmont-Montrose-Uptown District of
Downtown Chicago’s Northside, the development is a 156-unit transit-oriented,
apartment community consisting of 18 studios, 125 one-bedrooms, and 13
two-bedrooms.
Built in two phases
in 1915 and 1917, the property was completely renovated by the seller in 1982.
“Chicago’s northside
is a very popular and affluent neighborhood that is known for its vintage condo
buildings, tree-lined streets, and location near Lincoln Park, Wrigleyville and
the Uptown Entertainment District,” says Ben Finley, National Head of
Acquisitions at Avanath.
“This was a rare opportunity to acquire a
well-located asset in a neighborhood with an increasing need for
affordability.”
59-Unit
Renaissance North Apartments in Chicago
Avanath Capital Management
also purchased Renaissance North, a 59-unit, mixed-income affordable housing
community at 551 West. North Avenue in
Chicago, for $15.45 million. The transaction represents Avanath’s first
public-housing deal.
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| Renaissance North, a 59-unit, mixed-income affordable housing community at 551 West North Avenue, Chicago |
Constructed in 2003, the property features one-, two-, and three-bedroom units
in addition to first floor retail space. One
of the first developments built in conjunction with the Chicago Housing
Authority, Renaissance North offers both market-rate and affordable units.
“The apartment community is located between two neighborhoods with Lincoln Park
to the north and Old Town to the south,” says Finley.
“Both of these regions are experiencing
meaning growth, which will continue to benefit the property.”
According to Finley,
this acquisition is also a testament to the
importance of public-private partnerships in preserving affordability in the
region.
102-Unit Victoria
Park at Edgewater in Maryland
Avanath has also
acquired Victoria Park at Edgewater, a 102-unit affordable senior housing community
at 87 Stewart Drive in Edgewater, Maryland for $11.3 million.
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| Victoria Park at Edgewater, a 102-unit affordable senior housing community at 87 Stewart Drive in Edgewater, MD |
Located in the sought-after Annapolis submarket, the apartment community is the
only senior affordable community in the region, according to Finley.
“The asset’s location in close proximity to major metros including Washington
D.C. and Baltimore and the limited supply of affordable housing in the area
will continue to drive long-term demand for the property,” explains Finley.
“In fact, the
property is currently 100-percent occupied with a waiting list of more than 200
individuals.”
The area’s current rising demand is proving out the firm’s investment strategy,
Finley notes, adding that Avanath previously identified this region as an
emerging market and currently owns six other properties throughout the D.C.
metro region.
Contact:
Lexi Astfalk
(949) 438-6262
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