Avanath Capital Acquires 202 Affordable Units in New York, Maryland for $36.3M

NEW YORK CITY and TEMPLE HILLS, Md. — Avanath Capital Management has expanded its East Coast portfolio, acquiring two affordable housing properties in New York and Maryland for a combined total of $36.3 million.

“The need for quality affordable housing impacts all demographics everywhere,” says Daryl Carter, founder, chairman and CEO of Avanath Capital Management. “Whether a millennial priced out of a city’s urban core or a baby boomer retiring, downsizing and living on a fixed income, this demand continues to grow across the U.S.”

Avanath acquired Invincible Court, a 54-unit affordable family apartment community in Harlem, for $19.3 million. The property was acquired in joint venture partnership with Oak Tree Residential.

The apartment community is located in the Central Harlem area of Manhattan near the Abyssinian Baptist Church, which is the third oldest African American church in the U.S. and one of the cornerstones of the Harlem Renaissance cultural movement in the 1920s, according to Carter.

The $6.3 billion Columbia University campus extension at 125th Street and Broadway, along with an ongoing migration of younger renters being priced out of other areas across Manhattan, are major components fueling growth in the neighborhood. Avanath plans to implement a series of renovations to the property, which will include renovations to the interior units, building improvements, transforming the basement space into a laundry facility and adding storage lockers.

“Two of the top in-demand amenities for residents at the property are laundry and storage space,” says Carter. “By transforming the unused basement into a laundry and storage facility, we will be able to enhance the quality of life for residents, increase occupancy and reduce turnover at the property.”

Friedman-Roth represented the seller, 138th Street Properties LLC, in the transaction. 

In the second sale, Avanath acquired Manor at Victoria Park, a 148-unit affordable community for seniors in Temple Hills, for $17 million. The property will benefit from its close proximity to downtown D.C., an expansive transportation network and a growing population of seniors, according to John Williams, president and chief investment officer of Avanath.

“Seniors are increasingly moving out of deeper suburban areas and into suburbs directly outside urban cores, or within five to 10 miles of a city center,” explains Williams. “This is because many seniors want to be located near transportation, retailers, medical offices, and their families and grandchildren who have opted for more urban environments.”

Avanath currently owns five other properties in the surrounding areas. CBRE represented the seller, Harmony Housing, in the transaction.