Avanath Buys Mixed-Use Property in Orlando for $62.5M

A California-based private real estate investment management firm has acquired a mixed-use, mixed-income property in Orlando in hopes of preserving affordable living for the community. 

Avanath Capital Management, LLC bought City View, a 266-unit property for $62.5 million. Located at 595 Church Street, the property also has 24,865 square feet of retail space. The firm brought the property through a commingles fund equity and financing from JPMorgan Chase and Fannie Mae.  Marcus and Millichap’s Affordable Housing Advisors marketed the transaction

Daryl Carter, founder, chairman, and CEO of Avanath, says the acquisition is a rare opportunity to create value and contribute to the community.  

“With this investment, we will preserve much-needed affordable housing while elevating the quality of resident living spaces and common areas, as well as improving the retail spaces to serve the needs and interests of the growing Downtown Orlando market,” said Carter, in a press release. 

City View is 96.9% occupied and features one- and two-bedroom units with amenities including 9-foot ceilings, in-unit laundry, and central HVAC. Amenities include a fitness center, a business center, and two resident lounges.

Of the 226 units, 131 are designated affordable with rent restrictions that will last until 2050. The firm aims to operate in affordable communities and will keep the current designations of 28 units at 50% of the area median income, 79 units at 60%, and 24 units at 120% of the area medium income.  

“Ensuring access to quality affordable housing in this market is essential, especially as Downtown Orlando’s median rents have increased 19.3% over the past year,” said Carter.

Vince Toya, head of community development banking and agency lending for JPMorgan Chase says working with Avanath is a great example of how critical housing needs can be addressed to stabilize the community. 

“In collaboration with Fannie Mae, we are proud to support Avanath with the acquisition of City View to preserve 266 multifamily units of affordable housing and their plans to enhance the local community offerings,” said Toye, in a press release

Avanath plans to renovate the 15-year-old property’s units with the addition of plank flooring, quartz countertops, updated paint, new fixtures, and updated appliances. The firm will also upgrade City View’s common areas and retail spaces, and replace the roof, HVAC, and boiler. 

John Williams, president, and CIO of Avanath, says the firm identified the opportunity to create additional scale and efficiency through building its portfolio in the Orlando region and that the company will enhance resident services and community management. 

“Through these improvements, we can generate additional revenue that will create sustained opportunity to provide top-quality housing at both market rate and affordable rents,” said Williams, in a press release.  

Avanath will also take energy and water efficiency measures by installing LED light fixtures throughout the common areas and low-flow faucet aerators, showerheads, and toilets, Carter says. 

 “Our team will also conduct a resident survey at the property to better understand the needs and wants of residents with respect to social services and other activities,” Carter says.” 

City View’s 13 storefronts include the Orlando Police Department, plus boutique retail stores, restaurants and delis, and financial education and literacy companies. The building is within walking distance of the Amway Center and Exploria Stadium.