Avanath Capital Management has expanded its reach in the Boston area with the acquisition of Logo Apartments, an affordable housing portfolio involving five different sites totaling 11 buildings and 73 units across Roxbury.
The firm, a private real estate investment manager and registered investment adviser, acquired the properties for $22.6 million from Affirmative Housing, according to officials.
Each unit is covered by an Option 1A Department of Housing and Urban Development Housing Assistance Payment contract, which will preserve affordability for an additional 20 years. The portfolio is 100% occupied and contains a mix of one-, two-, three-, four-, and five-bedroom units, ranging between 700 and 1,450 square feet. In-unit amenities include hardwood flooring in the bedrooms and living areas and wood-laminate cabinets, laminated countertops, and vinyl composite tile flooring in the kitchens.
Avanath plans to implement an improvement strategy that includes upgrades to the unit interiors as needed, the major systems, and for accessibility as well as other capital expenditures to improve the condition and limit future deferred maintenance.
The property also benefits from two commercial lease agreements, including a supermarket and a design studio and two cell tower leases with T-Mobile.
“Avanath is adept at identifying markets where economic growth is rising and home affordability is likely to decrease,” says John R. Williams, president and chief investment officer of Avanath Capital Management. “Due to its knowledge-based economy rooted in life science, tech, health care, and education, Boston is expected to outperform the U.S. economy long term. The region is predicted to see net job growth of 1.3% through 2025 that ranks it in the top 51 metros in the country, and its GDP growth rate of 12% ranks it 19th in the nation, positioning it for a solid post-pandemic recovery. This will increase the call for quality affordable housing in this market in the foreseeable future.”
The properties are located at 10 Copeland St., 34 Waumbeck St., 115 Dale St., 256 Warren St. and 54 Holworthy St. in Roxbury.
Logo Apartments is the firm’s second acquisition in the Boston metro. Morton Village, which the firm acquired in October 2020, is a 207-unit affordable housing community located in the historic Mattapan neighborhood.