Avanath Pays $55M for Multifamily Properties in Chicago and Maryland

CHICAGO—Avanath Capital Management, LLC, which is headquartered in Irvine, CA, has acquired two multifamily communities here and another in Maryland for $55.05 million.

The properties acquired total a combined 317 units and increase the firm’s multifamily holdings in Chicago to 1,063 units and its total holdings in the Washington DC metro area to 1,169 units, according to John Williams, president and CIO at Avanath Capital Management.

Williams says that affordability is a major concern in many markets across the nation as home prices and rents continue to rise while wages remain stagnant.

“Our investment strategy is founded on preserving affordability for residents in some of the nation’s most cost burdened areas while simultaneously creating value for our investors,” he says. “Through our proven asset management strategy, we will make capital improvements to these newly acquired properties that will enhance value for investors and keep rents low for residents.”

Transaction details include the purchase of the Scotland Yard Apartments in Chicago for $28.3 million. Located in the Buena Park residential neighborhood in the Belmont-Montrose-Uptown District of Downtown Chicago’s Northside, the development is a 156-unit transit-oriented, apartment community consisting of 18 studios, 125 one-bedrooms, and 13 two-bedrooms. Built in two phases in 1915 and 1917, the property at 4215-4261 Broadway St. was completely renovated by the seller in 1982.

Avanath will execute a number of improvements to the property, including exterior tuck pointing, repairing metal framing on the cat walks and stairways, security cameras upgrades, LED lighting, and moving the office to a non-rentable unit to put the current office back online.

The other Chicago deal involved the acquisition of Renaissance North, a 59-unit, mixed-income affordable housing community, for $15.45 million. The transaction represents Avanath’s first public-housing deal. Avanath plans to make a series of renovations to the property that include interior renovations on the market rate units, pressure washing, security camera upgrades, replacing common area hallway flooring and replacing drop ceilings in all hallways.

Constructed in 2003, the property located at 551 W. North Ave., features one-, two-, and three-bedroom units in addition to first floor retail space. One of the first developments built in conjunction with the Chicago Housing Authority, Renaissance North offers both market-rate and affordable units.

Avanath has also acquired Victoria Park at Edgewater, a 102-unit affordable senior housing community in Edgewater, MD for $11.3 million.

Located in the sought-after Annapolis submarket, the apartment community is the only senior affordable community in the region. Victoria Park at Edgewater, located at 87 Stewart Drive, features a mix of one- and-two-bedroom units along with a variety of community amenities for seniors including billiards/game room, central laundry facilities, computer lab, fitness and wellness center, library, outdoor patio, theatre and entertainment center and two elevators, among other features.

“We plan to make some interior and exterior renovations to the property including new LED lighting, new paint and landscaping, upgrades to the entertainment room, and the installation of barbecue grills,” says Ben Finley, national head of acquisitions at Avanath “We also plan to add Amazon lockers for residents.”