Avanath Capital Management has purchased three affordable housing communities with a combined total of 317 units in Chicago and Maryland. The assets were acquired from three different sellers for a total of $55.05 million.
The acquisitions bring the company’s total holdings in Chicago to 1,063 units and its total holdings in the Washington, D.C., metro area to 1,169 units, according to John Williams, president and CIO at Avanath Capital Management.
“We have been extremely active this year, rapidly expanding our AUM (assets under management) throughout many major markets across the nation,” says Williams. “We target markets where there is tremendous pent-up economic growth, exceptionally strong job and population growth, and an increasing need for affordable housing. Both Chicago and the D.C. metro area meet these qualifications.”
Avanath’s asset management strategy includes value engineering renovations, incorporating sustainable features, and improving operational efficiencies through its integrated property management and the firm’s niche focus on affordable housing.
In Chicago, the firm has acquired the 156-unit Scotland Yard Apartments for $28.3 million from Moran & Co. Located in the Buena Park neighborhood of Chicago’s Northside, the development is a transit-oriented community consisting of 18 studio, 125 one-bedroom, and 13 two-bedroom units. The units operate under a Sec. 8 Housing Assistance Payment contract. The loan servicer was JLL. Built in two phases in 1915 and 1917, the property was renovated in 1982.
Avanath also purchased Renaissance North, a 59-unit, mixed-income affordable housing community in Chicago, for $15.45 million from the North Larrabee Limited Partnership. The loan servicer was CBRE, and the transaction represents Avanath’s first public housing deal.Constructed in 2003, the property features one-, two-, and three-bedroom units in addition to first-floor retail space. One of the first developments built in conjunction with the Chicago Housing Authority, Renaissance North offers both market-rate and affordable units.
Avanath plans to make a series of renovations, including interior renovations on the market-rate units, security camera upgrades, new common area hallway flooring, and the replacement of drop ceilings in all hallways. The property has three layers of regulatory agreements with the Illinois Housing Development Authority, Chicago Housing Authority, and the city’s Department of Housing.
The firm also acquired Victoria Park at Edgewater, a 102-unit affordable senior housing community in Edgewater, Md., for $11.3 million from Osprey Development. The loan servicer was Wells Fargo.
Located in the sought-after Annapolis submarket, the apartment community includes 44 units restricted to residents earning no more than 60% of the area median income (AMI), 22 units at 50% of the AMI, 18 units at 40% of the AMI, and 18 units at 30% of the AMI.
Victoria Park at Edgewater features a mix of one- and two-bedroom units along with a variety of community amenities for seniors, including a billiards/game room, central laundry facilities, a computer lab, a fitness and wellness center, a library, an outdoor patio, and a theater and entertainment center.
