NEW YORK CTIY—Institutional fund manager Avanath Capital Management, LLC of Irvine, CA has expanded its housing portfolio in the Northeast with the purchase of a 198-unit affordable rental housing portfolio in Brooklyn for $73 million from a private investor.

Avanath Capital acquired the portfolio of 17 apartment buildings in a joint venture partnership with New York-based Oak Tree Management. The properties are located in Prospect Heights, Crown Heights, Williamsburg, and Bedford-Stuyvesant and include 115 rent-stabilized units, 79 free-market units, and four commercial spaces. Average monthly rents in the newly acquired assets range from $1,700 to $2,500, which is approximately half the cost of rental comps in Brooklyn, which average $3,000 to $5,000 a month, the company states.

Peter Von Der Ahe, Joseph Koicim, and Shaun Riney of Institutional Property Advisors, a division of Marcus & Millichap, and DJ Johnston of Cushman & Wakefield represented the seller. Andrew Dansker of Marcus & Millichap arranged the financing for the buyer. The portfolio's four commercial spaces are currently leased by a mix of local tenants that include Sunday Routine, a local restaurant/bar; Fool's Gold Records, an independent hip-hop/electronic record label store and a day care center, among others.