NEW YORK CITY—Avanth Capital Management and joint partner Oak Tree Management have acquired a multifamily portfolio comprised of four rent-stabilized apartment buildings across Brooklyn in an off-market transaction. The properties were purchased from New Start Development for a total of $60 million.
The four-asset portfolio was purchased through Avanath Affordable Housing II, a fund with $200 million of equity commitments.
“Brooklyn is a market with unbridled investment potential,” says John Williams, president and CIO of Avanath. “Based on high growth throughout the region, rising market rents, and strong employment hubs both in Brooklyn and the surrounding boroughs, this acquisition is positioned to deliver strong risk-adjusted returns for our investors.”
He adds, “Avanath's ongoing strategy is to acquire well-located assets in locations with high barriers to entry that will continue to deliver long-term stabilized cash flow, while also providing affordable housing options to residents throughout the area.”
Adds Jere Lucey, Oak Tree principal, “We were able to combine our local knowledge with Avanath's extensive experience in acquiring and sourcing affordable housing projects in urban core markets.”
The four buildings in the portfolio include: 50 Greene Ave., which was built in 1932 and features 39 units in Fort Greene; in Crown Heights, 597 Grand Ave., built in 1900 and comprised of 52 units; as well as a 32-unit rent-stabilized apartment building built in 2001 at 800 Bergen Street;and 471 Vanderbilt Ave., built in 1930 and offering 26 units in Clinton Hill.
The portfolio acquisition represents one of the final investments in Avanath Capital Management's Affordable Housing Fund II. Avanath Capital plans to raise additional funds in 2016, according to Williams.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
