Avanath Capital Management has bought the 303-unit 38 Sixth and the 298-unit 535 Carlton in Brooklyn, N.Y., for a combined total of $315 million. The seller of the two-asset portfolio was Greenland USA. The purchase also marks Avanath’s 100th property.
Both properties are rent-stabilized and have a good number of LIHTC-qualifying units, said Avanath’s President & CIO John Williams, in a prepared statement. A total of 37 percent of the units are regulated to house residents earning between 40 and 100 percent of the area median income.
The two communities represent the first Brooklyn-based assets to be managed by Avanath Communities. The company will also complete energy-saving upgrades within the units, invest in green assets for the properties as well as implement social impact programming for tenants, such as after-school programs and technology training, said John O’Connor, acquisitions director with Avanath, in prepared remarks.
Part of a bigger project in Brooklyn
Built in 2017, 38 Sixth offers a mix of studios and one- to three-bedroom units, ranging from 498 to 1,163 square feet, according to Yardi Matrix data. The 25-story property also includes 22,958 square feet of office space and 5,922 square feet of retail space, according to the same data provider. Community amenities include a fitness center, clubhouse, children’s playroom, rooftop terrace, 21 laundry facilities and 67 parking spaces.
Also built in 2017, 535 Carlton has studios and one- to three-bedroom floorplans. Community amenities include a fitness center, business center, community room and children’s playroom, according to Yardi Matrix data. A total of 305 parking spaces are also available, as well as 18 laundry facilities. This property also includes 8,300 square feet of retail space and a rooftop terrace, according to the same data provider.
Located at 38 Sixth Ave., and 535 Carlton Ave., respectively, the properties are very close to one another and are both part of the ongoing Pacific Park New York Development project, Brooklyn’s largest development to date. When complete, the project will have 8 acres of public open space, a public middle school, 15 residential buildings and more than 7.3 million square feet of residential, commercial and retail space. The properties are also adjacent to Barclays Center and surrounded by several transportation, retail, dining and entertainment options within a 1-mile radius.
Including this portfolio purchase, Avanath currently has 1,059 units across 28 properties in New York City, primarily in Brooklyn. In March, the company secured $536 million for its open-ended affordable housing fund.