Avanath Pays $119M for Mixed-Income Chicago Asset
Lincoln Park Plaza includes 256 units and ground-floor retail space.
Avanath Capital Management LLC has acquired Lincoln Park Plaza, a 256-unit mixed-use multifamily community in Chicago. BJB Partners sold the asset for $119 million.
Lincoln Park Plaza includes 147 affordable units, which are protected by a renewable HAP contract. Avanath’s Founder, Chairman & CEO Daryl Carter stated in prepared remarks that the contract provides Section 8 rental subsidy to 57 percent of the total residential units.
Lincoln Park Plaza is located at 600 W. Diversey Parkway, near Route 41 and Interstate 90. Situated in the Lakeview submarket, the pet-friendly community is close to multiple dining options, retail centers, green areas and entertainment venues.
The partially affordable community features 190,950 square feet of residential space and 26,287 square feet of retail space on the ground floor. The 17-story tower incorporates one-, two- and three-bedroom apartments ranging between 687 and 1,498 square feet. Common-area amenities at Lincoln Park Plaza include a fitness center, a clubhouse, a business center, laundry facilities, bike storage, controlled access and garage parking.
The new owner plans to use its improvement strategy to upgrade the structural elements, parking garage, building and key systems of the building. The 1981-completed property will receive new sustainable features and environmentally friendly upgrades, such as Energy-Star appliances, a high-efficiency boiler system, LED lights and low-flow faucet aerators, toilets and showerheads.
Avanath will manage Lincoln Park Plaza internally, ensuring the property will operate according to the affordable housing guidelines established by the various governmental agencies. Residential activities, social programs and services will also be introduced.
Lincoln Park Plaza marks Avanath’s fourth acquisition in Chicago and sixth in Illinois. The company is expanding its footprint in the state, owning a portfolio totaling 1,319 units. Avanath currently operates in 15 states across the U.S., while constantly looking for opportunities in new markets that have a strong demand for affordable rentals.
Since November 2022, the company has closed on more than $205 million in additional equity commitments to the Avanath Affordable Housing Renaissance Fund. This year, Avanath plans to invest more than $500 million in new purchases to further expand its portfolio.