Avanath Capital Management Acquires 100th Asset: A Mixed-Use Rent-Stabilized Portfolio in Brooklyn, NY for $315 Million

 

Avanath Capital Management has acquired 38 6th Avenue, a mixed-use building in Brooklyn, NY, containing 303 units.

 (Photo courtesy of Greenland)

 

Irvine, CA – Avanath Capital Management, LLC, a private real estate investment manager and Registered Investment Adviser, has acquired its 100^th asset: a mixed-use portfolio containing two multifamily properties with ground-floor retail space in Brooklyn, New York, for $315 million.

The portfolio, comprising 601 Affordable and market-rate residential and commercial units, qualifies for New York City’s Rent Stabilization program.

Daryl J. Carter

“Increasing housing accessibility is critical to Avanath’s mission as we acquire our 100^th property,” says Daryl J. Carter, Founder, Chairman, and CEO of Avanath.

“We are assuming ownership of these buildings as New York City faces a growing affordable housing crisis. 

"This acquisition allows us to provide high-quality housing in an area of the country where market-rate rents are notoriously high and the demand for budget-friendly apartment homes is rising.”

According to Brooklyn Magazine and based on data from New York City’s Department of City Planning, Brooklyn’s population grew by 230,000 people while just 78,300 housing units were added from 2010 to 2020.

John R. Williams

Thirty-seven percent of the subject portfolio comprises units that are regulated to serve residents with incomes between 40% and 100% of area median income.

“With this rent-stabilized portfolio and its several LIHTC-qualifying units, we identified an incredible opportunity to provide elevated, affordable options to community members within this area,” notes John R. Williams, President and CIO at Avanath Capital Management.

“We are expecting the portfolio’s high occupancy to be maintained due to its ideal location, with public transportation, employment centers, and several entertainment options all nearby.”

Keith Harris

“We are excited that the acquisition of these two towers will be our opportunity to introduce Avanath Communities to Brooklyn," says Keith Harris, Executive Vice President of Acquisitions for Avanath.

 "It is an exciting and transformative time for New York City, where we already held 458 units across 26 properties—primarily in Brooklyn—before acquiring this new portfolio.

“This acquisition broadens our depth considerably in the New York City market, where we now own 28 properties totaling 1,059 units, and in the New York metropolitan area, where we now own 32 properties totaling 1,706 units.

 John O’Connor

“Our firm is always looking for ways to elevate the lives of our residents, and we are accomplishing that with this portfolio by focusing on four main ESG objectives,” says John O’Connor, Acquisitions Director for Avanath.

“We will be completing energy-saving upgrades within the units, complying with New York City’s energy ordinances, investing in ‘green’ assets for the buildings, and offering social impact programming for residents.”

Avanath Capital Management has acquired 535 Carlton Avenue, a mixed-use building in Brooklyn, NY containing 298 units. (Photo courtesy of Greenland)

The two buildings in the mixed-use portfolio are located at 38 6^th Avenue and 535 Carlton Avenue in Brooklyn, New York.

CONTACTS:

Madison Bridges / Lexi Astfalk

The Smart Agency

949-438-6262

mbridges@thesmartagency.com

 www.avanath.com.