Avanath Capital Management has completed the initial closing of its open-ended affordable housing fund, amassing $536 million in equity commitments. Part of the funds will be used to purchase a seed portfolio of 27 communities encompassing a total of 4,256 units and totaling $830 million in gross asset value.
All these assets are stabilized, offering stable cash flow, high occupancy and low turnover, according to prepared remarks from Avanath Partner & CFO Wesley Wilson.
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Avanath worked with investors such as UBS and Accord Capital Partners on the open-ended structure and to launch it as a seeded investment vehicle, Wilson added.
Daryl Carter, the company’s chairman & CEO, also mentioned in a prepared statement that The Avanath Affordable Housing Renaissance Fund will serve as the company’s sole investment vehicle for new affordable and workforce housing acquisitions moving forward.
Overall, Avanath owns more than 50 properties and 12,000 units across the U.S., according to Yardi Matrix data. Last October, the company made its third purchase in South California in nine months, paying $65.1 million for the 360-unit River Run Senior, an affordable, age-restricted community in Corona, Calif.