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Daryl J. Carter
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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.”
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| 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.”
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Wesley Wilson
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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
