Avanath Closes More Than $205M in Fund Commitments
The firm secured additional equity for its affordable housing financing vehicle.
Multifamily owner and operator Avanath Capital Management LLC has announced that since November, it has closed on more than $205 million in additional equity commitments to the Avanath Affordable Housing Renaissance Fund.
In a prepared corporate statement, an Avanath official noted just 36 rental homes are available for every 100 exceptionally low-income renter households, according to an April 2022 report from National Low Income Housing Coalition. The official added that as Avanath’s lone investment vehicle dedicated to affordable and workforce housing, the Renaissance Fund and its investors are contributing to needed, meaningful change.
The initial closing of the open-ended Fund had been announced by Avanath last March. It included $536 million in equity commitments.
These commitments were used to seed the vehicle with an institutional-quality affordable housing portfolio. Less than 12 months later, the fund has grown Avanath’s acquisitions capabilities. That has enabled hastened growth, realized through the purchase of four more apartment properties using Renaissance Fund equity. This spurt came during late 2022, when the rest of the industry paused or slowed acquisition activity.
The $205 million in recent equity commitments to the fund closed in November through early January and brings its portfolio to 27 properties totaling almost 4,800 units. It is valued at nearly $1.2 billion and includes more than $750 million of equity commitments from more than 15 institutional investors. The recent commitments reflect the portfolio’s strength and resilience, an Avanath official said in a prepared company statement. Those commitments came to the Fund from both existing institutional investors and those new to working with Avanath. Earlier this month, Avanath acquired a Brooklyn, N.Y., high-rise community for $101 million.