Avanath Capital Management has acquired Alexandria Station, a 290-unit affordable apartment community in Alexandria, VA for approximately $52.7 million.
ORLANDO, FL—Avanath Capital Management, LLC of Irvine, CA has spent $99.175 million to add a total of 578 units to its multifamily portfolio with the purchase of the Brooke Commons apartment community in Orlando and the Alexandria Station Apartments in Alexandria, VA.
Avanath Capital Management purchased Brooke Commons, a 288-unit mixed income community in Orlando, for $46.5 million. The firm also purchased Alexandria Station Apartments, a 290-unit affordable apartment community, for $52.675 million.
"Both the Washington D.C. Metro and Orlando markets align well with Avanath's investment strategy of targeting markets with strong economic, job, and population growth where home affordability is becoming increasing more difficult and market-rate rents continue to rise," says John Williams, president and CIO of Avanath Capital Management. "These are some of the nation's most cost-burdened markets with a demonstrated demand for affordable housing properties. They present opportunities for our firm to invest in properties where we can preserve affordability for residents and produce steady returns for our investors."
Brooke Commons was built in 2000 and is 99% occupied. The development features 36 two-story buildings. Five percent of the units at the property serve residents that make 55% of AMI, 50% of the units serve residents who make 60% of AMI, and 45% of the units serve residents who make 60-80% of AMI.
The asset is located three miles from the University of Central Florida. Amenities at Brooke Commons include a business center, clubhouse, fitness center, swimming pool, BBQ and picnic areas, playground, volleyball court and a car wash.
Avanath plans to implement an after-school program called "Monster Club," which will include homework assistance, arts and crafts, summer camp, and other offerings at no cost to residents. Property management will also be implementing a tenant program for healthcare, which will include services such as health screenings, flu shots, vision and hearing tests, among others.
Avanath now owns a total of five properties in the Orlando metro market totaling 1,352 units, including Academy at Waterford Lakes, which is approximately four miles from the property. Avanath owns a total of 10 properties totaling 1,605 units across Florida.
In terms of its Alexandria, VA acquisition, Alexandria Station was built in 1965 and renovated in 1998 and 2010, Alexandria Station is a 97% occupied affordable family community comprising 25 three-story structures.
The deal marks Avanath's eighth investment in the D.C. metro area, including Virginia and Maryland. Alexandria and its surrounding submarkets are undergoing significant growth, which Williams says is in part due to Amazon's planned second headquarters in Crystal City, VA, less than seven miles from Alexandria Station.
"It is estimated that the new headquarters will create 59,308 new jobs and generate $1.83 billion in cumulative tax revenue by 2030," Williams says. "The increase in local employment will further generate demand for affordable units in the market."
Alexandria Station is a 251,579 square-foot property consisting of studios, one, two- and three-bedroom units. In-unit amenities at the property include dishwashers, garbage disposals, air conditioning and balconies or patios. Common amenities include a swimming pool, BBQ and picnic areas, a playground, on-site-laundry facilities and a clubhouse.
Avanath reports it will implement a series of upgrades to the interior and exterior of the property, including the redevelopment of its community spaces.
Avanath owns a total of 1,169 units across the D.C. Metro area, including two other properties in Virginia, Acclaim at Ashburn, which is 34 miles northwest of Alexandria Station and 98% occupied, and Acclaim at Sterling, which is 27 miles northwest and is 94% occupied.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
