Avanath Capital Management has hit a new milestone. The private real estate investment manager has acquired its 100th asset, a mixed-use portfolio comprised of two multifamily properties and ground-floor retail space in Brooklyn, New York, for $315 million.
The buildings, at 38 6th Ave. and 535 Carlton Ave. and adjacent to the Barclays Center, include 601 affordable and market-rate units, which qualify for New York City’s Rent Stabilization program.
“Increasing housing accessibility is critical to Avanath’s mission as we acquire our 100th property,” says founder, chairman, and CEO Daryl Carter. “We are assuming ownership of these buildings as New York City faces a growing affordable housing crisis. This acquisition allows us to provide high-quality housing in an area of the country where market-rate rents are notoriously high and the demand for budget-friendly apartment homes is rising.”
The mixed-use buildings are the first Brooklyn-based properties to be managed by Avanath. The acquisition expands its reach in New York City, where it owns 28 properties with over 1,050 units and in the New York metro area, where it owns 32 properties with over 1,700 units.
The two buildings were constructed in 2017 as part of the Pacific Park Brooklyn redevelopment project. Upon completion, the site will feature 8 acres of public open space, a new public middle school, 15 residential buildings, and over 7.3 million square feet of residential, commercial, and retail space.
“With this rent-stabilized portfolio and its several low-income housing tax credit-qualifying units, we identified an incredible opportunity to provide elevated, affordable options to community members within this area,” said John R. Williams, president and chief investment officer. “We are expecting the portfolio’s high occupancy to be maintained due to its ideal location, with public transportation, employment centers, and several entertainment options all nearby.”
The portfolio also offers 82,681 square feet of parking and 42,643 square feet of retail space, which helps add value to residents and diversify the properties under Avanath’s management, he added.
Amenities include a fitness center, a yoga studio, an outdoor terrace, a library, an entertainment suite, and a children’s playroom. According to Avanath, it also plans to implement environmental and social impact measures for both properties.
“Our firm is always looking for ways to elevate the lives of our residents, and we are accomplishing that with this portfolio by focusing on four main environmental, social, and governance objectives,” noted John O’Connor, acquisitions director. “We will be completing energy-saving upgrades within the units, complying with New York City’s energy ordinances, investing in ‘green’ assets for the buildings, and offering social impact programming for residents.”
