IRVINE, Calif. – April 30, 2015 – (RealEstateRama) — Avanath Capital Management, LLC, a private real estate investment manager, has acquired a two-property, 553-unit affordable housing portfolio in Orlando, Florida and Cary, North Carolina for $45.9 million through an off-market transaction.
Avanath specializes in the acquisition and operation of affordable and workforce housing assets nationwide, with a focus on supply-constrained markets.
“Undersupplied affordable housing markets, particularly in high-growth cities, are experiencing even greater pressure as general multifamily rents continue to rise throughout the nation,” notes John R. Williams, President and CIO of Avanath.
Williams notes that the two markets in which these assets are located are demonstrating particularly strong demand based on job creation.
“The Raleigh/Cary submarket of North Carolina was recently recognized by Forbes as second highest in the nation in the creation of technology jobs, while Orlando continues to lead job growth among all Florida metro areas,” he says.
“Based on this increasing demand, our investment strategy creates a win-win in these markets,” Williams continues. “We continue to increase the value of our national portfolio by investing in high-quality affordable/workforce assets in major employment markets. Simultaneously, we are able to generate deep financial and social benefits in the communities surrounding these properties by bringing renovated, higher-quality affordable housing to much-needed areas.”
Avanath plans to implement a redevelopment and repositioning of each property, including the expenditure of approximately $7,000 per unit. A renovation plan for each property has been established, with upgrades including exterior paint, wood repair, new kitchen appliances and finishes, HVAC improvements, and refreshed landscaping.
The repositioning also includes a name change for both communities, giving each its own identity.
The Orlando community, which was formerly known as “Oakwood,” has been renamed “Bella Cortina,” and is located at 4708 Olive Branch Road in Orlando, Florida. The property is centrally located within Orlando’s tourist corridor, near Disney World and Universal Studios. The 304-unit property was 96 percent occupied at the time of purchase.
The North Carolina community, formerly “Geneva Park,” is now named “Arbors at Cary.” Located at 200 Wrenn Drive in Cary, North Carolina, the property is situated within the Research Triangle, which is anchored by Duke University and University of North Carolina at Chapel Hill. The 248-unit property was 95 percent occupied at the time of purchase.
The portfolio was acquired through Avanath Affordable Housing II, LLC, a fund with $200 million of equity commitments. At the close of investing Fund II, the firm will have approximately 40 multifamily properties totaling more than 7,000 units under management and ownership, notes Williams.
About Avanath Capital Management
Avanath Capital Management is a privately-held, vertically integrated investment firm managing real estate and real estate-related investments generating attractive risk-adjusted returns through current income and capital appreciation from its investments. The firm also provides property management services through its two affiliates, Avanath Property Management and McKinley- Avanath Property Management.
Founded by Daryl J. Carter, the Avanath management team averages 25 years of experience and has successfully guided investment funds in defining growth opportunities and delivering attractive returns. Avanath professionals have real estate operating expertise and long-standing relationships with strong local, regional and national sponsors that can access investment opportunities aligned with Avanath’s initiatives.
Amanda Brenner/ Jenn Quader
Brower, Miller & Cole
Abrenner (at) browermillercole (dot) com