Avanath Capital Management, in joint partnership with New York–based Oak Tree Management, has acquired an affordable housing portfolio of 17 apartment buildings with 198 units in Brooklyn, N.Y.
The properties are located in the Bedford-Stuyvesant, Crown Heights, Prospect Heights, and Williamsburg neighborhoods. They include 115 rent-stabilized units, 79 free-market units, and four commercial spaces.
“This acquisition will allow us to maintain housing affordability in one of the most expensive submarkets in the country, while also doubling our existing Brooklyn portfolio and amassing economies of scale in ownership,” said John Williams, president and chief investment officer of Avanath, an institutional fund manager that has invested over $1 billion in affordable and workforce housing properties nationwide. “Our strategy is to cater to this underserved demographic by preserving the dwindling supply of affordable housing through capital improvements that enhance quality without sacrificing affordability.”
Comprehensive renovations are planned for the units as they turn over, including interior upgrades to the kitchens and the bathrooms, remodeling of kitchen cabinets, and installation of new flooring.
Avanath worked closely with Oak Tree Management on the acquisition. The properties were acquired from a private investor for $73 million. Peter Von Der Ahe, Joseph Koicim, and Shaun Riney of Institutional Property Advisors, a division of Marcus & Millichap, and D.J. Johnston of Cushman & Wakefield represented the seller. Andrew Dansker of Marcus & Millichap arranged the buyer financing.
Avanath and Oak Tree Management previously acquired in Brooklyn a three-building affordable housing portfolio with 46 units in 2016 and a four-building affordable housing portfolio with 148 units in 2015.