Thursday, January 26, 2023

Avanath announces close of more than $205 million in additional equity commitments for open-ended affordable housing fund

 

Daryl J. Carter

IRVINE, CA, Jan. 26, 2023 – Avanath Capital Management LLC, a multifamily owner and operator that primarily focuses on affordable housing, announces that it has recently closed on more than $205 million in additional equity commitments to the Avanath Affordable Housing Renaissance Fund (the “Fund”) since November, according to Chairman and CEO Daryl J. Carter.

“Avanath remains committed to advancing its mission of delivering quality affordable and workforce housing, and this perpetual-life vehicle has positioned us to continually and effectively invest in both our communities and residents,” explains Carter.

 “As we navigate a period of economic uncertainty, rent-regulated housing is increasingly essential to the ability of residents to live comfortably and thrive in markets throughout the country.”

John R. Williams
Carter adds that, according to an April 2022 report from National Low Income Housing Coalition, there are only 36 rental homes available for every 100 extremely low-income renter households:

“As our sole investment vehicle dedicated to affordable and workforce housing, the Renaissance Fund and its investors are contributing to necessary and meaningful change. 

"We’re pleased to be managing one of the largest open-ended funds focused on rent-restricted multifamily available today, as reported by Preqin.”

Avanath announced the initial closing of the open-ended Fund this past March, which included $536 million in equity commitments that were used to seed the vehicle with an institutional-quality affordable housing portfolio.

Under a year later, the Fund has successfully bolstered the firm’s acquisitions capabilities and allowed for accelerated growth, according to John R. Williams, President and CIO at Avanath.

“Since the initial closing, Avanath has purchased four additional communities with equity from the Renaissance Fund,” explains Williams.

“While much of the industry paused or slowed activity in the second half of 2022, our team has been well positioned, through strong capitalization and long-held, trusted industry relationships, to continue to acquire in the high-cost, high-growth markets we target.”

Wesley Wilson

The recent $205 million in equity commitments to the fund, closed in November through early January, speak to the strength and resilience of the portfolio, notes Avanath CFO and Partner Wesley Wilson.

The Fund’s portfolio currently includes 27 properties totaling 4,786 units and is valued at nearly $1.2 billion with more than $750 million of equity commitments from more than 15 institutional investors.

“Recent commitments to the fund have come from institutional investors both existing and new to working with us,” says Wilson.

 “Our investors in this Fund are all aligned with our greater mission and attracted to the portfolio’s stability.

"Properties within the Fund typically experience occupancy rates above 95%, and our portfolio has traditionally seen residents stay an average of 6 or more years, compared to 1 year at market-rate communities. Further, several of our communities have waitlists that extend years.”

Williams adds that the continued attraction of investors to the Fund and the portfolio’s success are also testaments to Avanath’s holistic investment strategy:

“Our firm approaches all of our investments through an ESG lens, with a particular emphasis on operating our communities efficiently to reduce negative environmental impact, as well as tailored, intentional social programming to enhance residents’ lives each day.”

 

Wilson confirms: “We are proud to be entrusted with these equity investments and are grateful for our continued relationship with Accord Capital Partners, the exclusive capital advisor for the Fund, which, combined with the tireless effort of our entire Avanath team, makes the success of the portfolio and advancement of our mission possible.”

Contact:

 

Elisabeth Manville

The Smart Agency

949-438-6262

emanville@thesmartagency.com

 

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