ANN ARBOR, MI- On Feb. 25, McKinley, Inc. and Avanath Capital Management announced that they had formed a partnership called “mckinley – avanath” to manage apartment communities acquired by Avanath that would begin with two Midwestern developments with a total of 400 units. But McKinley CEO Albert M. Berriz told GlobeSt.com exclusively that the venture will quickly go national and ramp up to as many as 10,000 homes.
“With their funding ability and our ability to execute in the field,” Berriz said, “we're geared up for it.” Founded in 1968, McKinley specializes in managing affordable housing, much of it partly financed by agencies like Freddie Mac and subject to complex federal regulations. “Our people have worked with HUD for decades. We're well organized to fuel this growth.”
Berriz said he and Avanath CEO Daryl J. Carter have been friends for decades, having started out at the same Chicago bank back in the 1970's, but felt a successful partnership would depend on more than their personal relationship.
“We spent a lot of time making sure the cultures of the companies worked well together.” The new partners spent a year holding a series of sessions when they brought all the key executives together for dinners and other social events. “Our people have gelled in the same way we've gelled.”
Berriz expects it will take approximately three to five years to get up to 5,000 to 10,000 units. Many of the developments that get drawn into the new partnership will be in the smaller cities and university towns where McKinley already has a major presence.
“These are all markets that we've been in for decades,” Berriz added. Providing affordable housing “is our passion.”
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
