Dealmaker: Avanath Acquires Three Multifamily Properties for $38M
Michael Tucker email@example.com
Avanath Capital Management LLC, Irvine, Calif., acquired three Maryland and New Jersey multifamily properties for $38.08 million.
The acquisitions made through the firm's Avanath Affordable Housing III fund total 311 units.
In Upper Marlboro, Md., the firm acquired 100-unit community Largo Center for $14.3 million and 110-unit senior housing community Vistas at Lake Largo for $15.03 million. It also acquired 101-unit senior living complex Centennial Court in Wharton, N.J.--its first New Jersey acquisition--for $8.75 million.
Avanath President and Chief Investment Officer John Williams noted much of the multifamily market still caters to high-end housing and targets renters with annual incomes approaching $100,000, but the average American's annual income falls between $35,000 and $80,000. "This presents a deficit of affordable housing options for the largest group of renters in the United States," he said. "Our focus is to invest in markets with a need for affordable housing to fill this deficit, ultimately serving the needs of the largest cohort of renters in our nation."
Discussing the market for Largo Center and Vistas at Lake Largo, Williams said Prince George's County is the second-largest county in Maryland and directly borders Washington, D.C. "The market continues to grow as multiple federal agencies and technology companies expand in the area," he said. "Largo Center offers a prime location for employees in these industries to benefit from quick work commutes."
Williams said 30 percent of Wharton, N.J.'s population is adults age 50 and older, yet Centennial Court is one of only three senior housing communities in the area. "This is a tremendous competitive advantage, allowing us to capitalize on strong demand while maintaining senior housing affordability in an affluent and growing market," he said.
Constructed in 1997 under the Section 42 Low-Income Housing Tax Credit program, the four-story Centennial Court is currently 98 percent occupied with a 33-applicant waiting list. "This is partially due to lack of available senior housing, combined with no current plan for new senior housing developments in the next five years," Williams said.