Avanath, Oak Tree Acquire Brooklyn Apartment Portfolio for $60M

The companies acquired a multifamily portfolio consisting of four rent-stabilized apartment buildings in Brooklyn.
50 Greene Ave.

50 Greene Ave.

By Dees Stribling, Contributing Editor

New York—Avanath Capital Management and Oak Tree Management have partnered to acquire a multifamily portfolio of four rent-stabilized apartment buildings in Brooklyn in an off-market transaction. The partnership paid a total of $60 million for the properties, purchased through Avanath Affordable Housing II LLC, a fund with $200 million of equity commitments.

The four buildings in the portfolio acquired by the Avanath/Oak Tree partnership include:

  • 50 Greene Ave.—A 39-unit rent-stabilized apartment building built in 1932. Avanath Capital Management and Oak Tree Management plan a series of unit upgrades over time during their ownership.
  • 597 Grand Ave.—A 52-unit rent-stabilized apartment building built in 1900. The partners have a renovation plan to update the interior of the property, including kitchen and bathroom renovations, as well as unit and appliance upgrades.
  • 800 Bergen St.—A 32-unit rent-stabilized apartment building in the Crown Heights neighborhood of Brooklyn, 800 Bergen Street was built in 2001. The buyers plan unit upgrades over time during their ownership of the property, including upgraded countertops, appliances, and flooring.
  • 471 Vanderbilt Ave.—A 26-unit rent-stabilized apartment building built in 1930. A series of interior and exterior upgrades are planned.

The portfolio acquisition represents one of the final investments in Affordable Housing Fund II. Avanath Capital plans to raise additional funds in 2016, according to Avanath Capital Management president and CIO John Williams.

“Based on high growth throughout the region, rising market rents and strong employment hubs both in Brooklyn and the surrounding boroughs, the acquisition is positioned to deliver strong risk-adjusted returns,” Williams noted. “Avanath’s ongoing strategy is to acquire well-located assets in locations with high barriers to entry while providing affordable housing options.”