Tuesday, August 20, 2019

Avanath Acquires Three Affordable Housing Properties Totaling 317 Units in Chicago and Maryland for $55 Million


   
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.”

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.

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.

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.

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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