Avanath Capital Management, an Irvine, Calif.-based investment firm that specializes in low-income housing, and Brooklyn’s Oak Tree Management has closed on a second affordable housing portfolio in Kings County.
The landlords purchased a three-building, 46-unit residential portfolio in the Bedford-Stuyvesant section of the borough for $14.4 million from The Mann Group, Commercial Observer has learned.
The properties at 257 Quincy Street, 570 Jefferson Avenue and 308 Stuyvesant Avenue contain three vacant units, and 17 free-market and 26 rent-stabilized apartments. Avanath chose those properties because they had affordable apartments and are in a “rapidly growing” neighborhood, John Williams, the president and chief investment officer of Avanath, said in prepared remarks.
“Our objective centers on generating both strong risk-adjusted returns for our institutional investors, and also delivering social returns to the communities in which we invest,” Ben Finley, a senior vice president at Avanath who handled negotiations in the transaction, said in a statement.
The new landlords plan to renovate and upgrade the interiors and exteriors of the buildings, and they will also add laundry rooms to 308 Stuyvesant Avenue.
“I think they see Bed-Stuy as a safe place to invest while building out their portfolio and still maintain affordable [housing],” Cushman & Wakefield’s DJ Johnston, who represented The Mann Group with colleague Michael Amirkhanian, told CO.
In October of last year, Avanath and Oak Tree purchased a four-building, 148-unit rent-stabilized portfolio in Brooklyn—597 Grand Avenue, 471 Vanderbilt Avenue, 50 Greene Avenue and 800 Bergen Street—for $60 million.