Avanath Closes $388M Investment Funds

Avanath Affordable Housing III and Avanath III NY Co-Investment are two of the largest funds in the U.S. dedicated to affordable housing.

 John Williams and Daryl Carter
John Williams and Daryl Carter

Avanath Capital Management, a private real estate investment manager, has closed both the Avanath Affordable Housing III fund and the Avanath III NY Co-Investment fund, with $388 million in equity commitments. With this closing, Avanath has almost doubled its equity commitments from its Fund II, which had its final closing at $200 million in July 2015.

Avanath intends to invest these funds in acquiring and preserving affordable housing assets in supply-constrained markets. “The results we have achieved in Fund I and II have allowed us to elevate this third round of fund raising to new heights and to garner tremendous institutional interest nationally and internationally. As the institutional community begins to more deeply understand the affordability crisis in the U.S. and as institutions continue to prioritize social impact investments, we will see continued increased activity in the affordable sector for years to come,” said Avanath President & CIO John Williams, in a prepared statement.  

Multiple investors

The company’s funds comprises 19 investors, including three pension funds, three foundations, four U.S. companies, four U.S. banks, four U.S. family offices and one European family office.

“Fund III is our first to include European capital, a trend that we anticipate will continue as foreign capital continues to flow to U.S. markets,” said Avanath Founder, Chairman & CEO Daryl Carter.  

To date, Avanath Capital Management has acquired nine assets totaling $123 million under the funds and has an additional four assets under contract, with closings scheduled over the next months. “We have more than 50 percent of the total Fund III capital remaining to invest in additional affordable and workforce investments,” said Williams.  

Avanath Capital Management currently has more than $1.2 billion in assets under management, totaling 42 apartment communities and 7000 units, including Depot Square, a 71-unit affordable housing community in Boulder, Colo.

For more on Avanath Capital Management and its founder, check out MHN’s recent profile.

Images courtesy of Avanath Capital Management