Avanath Capital Management has acquired Acton Courtyard, a 71-unit fully affordable community in Berkeley, Calif. Equity Residential sold the property for $25.3 million, according to Yardi Matrix.
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Avanath Capital Management has acquired Acton Courtyard, a 71-unit mixed-use affordable-housing community with 7,013 square feet of ground-floor retail, located in Berkeley, Calif.
To further Leverage.com’s mission of democratizing knowledge about commercial real estate, we started an interview series with all kinds of CREF pros: everyone from multifamily and medical to cannabis and construction. This time we connected with John R. Williams, President and Chief Investment Officer at Avanath Capital, an investment firm that acquires, owns, renovates and operates affordable, workforce, and value-oriented apartment communities across the U.S.
Avanath Capital Management, LLC, a private real estate investment manager and Registered Investment Adviser, has acquired Acton Courtyard, a 71-unit mixed-use Affordable housing community with 7,013 square feet of ground-floor retail, located in Berkeley, California.
Although the economy is still recovering and the battle against COVID continues, the differences for the multifamily sector in mid-2021 compared to mid-2020 are remarkable. In many markets, key problems—among them, sliding occupancy and pricing, owner concessions and the struggle to get prospects—appear to be largely in the rear-view mirror.
Avanath has focused on ESG since its inception and made ESG core to its investment strategy, Williams says. Currently, the investment manager has $2.6 billion in assets under management across 13 states and 49 cities. Its portfolio consists of 90 communities with more than 11,000 units.
Affordable housing has remained relatively strong, stable, and steady throughout the pandemic, which is why Avanath is heavily invested in affordable housing, owning and operating 90 apartment communities in 13 states, comprising more than 11,000 apartment units. More than 85% of its communities are rent-regulated affordable properties—eligible for the Low-Income Housing Tax Credit, project-based Section 8, and local rent-restricted affordable properties.
Avanath Capital Management partnered with a local rancher to remove brush surrounding The Terraces apartments in Escondido as an eco-friendly way to stay ahead of California wildfires and ensure the safety of residents.
Affordable housing has always been a stable investment asset through up and down economic cycles, but the pandemic has deepened demand and exacerbated supply constraints. The dynamic is pulling more investment capital to the market from both foreign and domestic investors.
“We have noticed that affordable housing tends to perform in times of economic uncertainty and in a growing economy,” John Williams, president and CIO at Avanath Capital Management, tells GlobeSt.com. “This is appealing to investors as it can act as a stabilizer in a portfolio and allow for diversification. Foreign and domestic investors alike continue to be attracted to US affordable housing for these reasons as it offers downside protection and is a durable investment option.”
Affordable housing developers in Central Texas use a variety of programs and incentives to bridge the
gaps between tax credit equity and construction costs.