Avanath Acquires DC Mixed-Income Housing for $104M

reprints


Avanath Capital Management has acquired 2M Street Apartments, a 314-unit mixed-income apartment building in Washington, D.C., for $103.5 million.

The seller was WC Smith, which developed the property in 2014. The ground floor includes 4,100 square feet of retail space. 

SEE ALSO: BARDAS, Bain Capital Announce $600M Hollywood Studio Project

“2M set out what we wanted to achieve—a fully leased, stabilized property with an active, diverse mix of residents,” Chris Smith, WC Smith’s chairman and CEO, told Commercial Observer. “The timing was right for us to seek new ownership that shared our vision for 2M and that had the commitment and experience to ensure that vision was maintained.”

Located at 2 M Street NE, two blocks from the NoMa-Gallaudet Metro Station and three blocks from Union Station, the 12-story building includes 93 affordable units, with 59 apartments set aside for residents of the former Temple Courts public housing complex.

“Washington D.C., and the surrounding DMV is a very expensive housing market but one with great demographic, employment and economic metrics, which is why it is one of our target markets,” Keith Harris, Avanath Capital Management’s executive vice president of acquisitions, told CO. “Our acquisition team is adept at identifying opportunities within markets where the demand for affordable housing outweighs available supply. These markets can benefit from affordable and mixed income housing communities like 2M to which we apply targeted value-add strategies including upgrades and social programming.”

The building features a community dog park, a private theater, an indoor basketball court, a fitness center and a rooftop deck with a swimming pool and picnic areas. 

2M was also designed to Leadership in Energy and Environmental Design, or LEED, Gold standards, and includes rainwater harvesting, a green roof, highly efficient plumbing fixtures, solar panels and electric car charging stations. 

“Our firm has various upgrades planned to elevate the renter experience, and we plan to implement relevant social programs that make sense for the property,” Harris said. “We tailor our improvements and programs to meet the needs of our residents which we evaluate upon takeover. For example, at some of our properties, we offer health and wellness programming such as health coaching and exercise classes that would appeal to those residents. We are also always looking for ways we can make our properties eco-friendlier to reduce our carbon footprint.”

The mid-Atlantic team of CBRE represented the seller and the buyer and were led by Michael Muldowney.

Keith Loria can be reached at Kloria@commercialobserver.com.