Avanath Capital Management, a private real estate firm that invests in affordable and workforce housing properties throughout the United States, acquired three affordable housing communities: two in Detroit and one in Orange City, Florida, near Orlando.
The three properties add a total of 290 units to Avanath’s existing portfolio of more than 10,000 units across the nation.
Avanath has purchased the following properties:
Avanath Capital Management has acquired Saxon Trace Apartments, a 192-unit family property in Orange City, Florida, for $24.6 million.
Located about 30 miles from Orlando, Florida, Saxon Trace was attractive to Avanath because the firm was able to purchase it at a low basis in a market that has boomed during the last 10 years.
The property has maintained at least 98 percent occupancy during the last three years due to the lack of competition of affordable housing in the area. Avanath plans to implement a capital improvement plan to the property that includes a new roof, HVAC replacements and exterior paint.
Avanath Capital Management has also acquired North End Village, a 50-unit affordable apartment community in Detroit for $2.1 million
In 2019, Fiat Chrysler announced plans to invest $1.6 billion into converting the Mack Avenue Engine Complex and will commit an additional $900 million into improving the Jefferson North Assembly Plant, which will add 5,000 more jobs to Detroit. Additional investments in the city include a $5.6 billion investment into the revitalization of Downtown Detroit since 2009 by Dan Gilbert, billionaire investor and owner of Quicken Loans and Bedrock Capital. Gilbert has moved the headquarters of his two companies to Detroit and is set to complete the development of Hudson’s Site, which will be the city’s tallest building, in 2022.
Other ongoing developments include the Michigan Central Train Depot, a $740 million investment from the Ford Company that will renovate office space, develop retail and residential, and renovate the long-vacant Michigan Central Station; the Strategic Neighborhood Fund, an initiative that brings community developers and public capital together to help distressed neighborhoods surrounding Downtown and Midtown Detroit; and the Entrepreneurs of Color Fund, an $18 million fund funded by J.P. Morgan and the Kellogg Foundation that provides capital to borrowers who are otherwise challenged in securing more traditional forms of financing.
Built in 2005, North End Village is 100 percent occupied and consists of four two-story structures totaling 56,238 square feet. The unit mix includes 68 percent two-bedroom/one-bathroom units and 32 percent three-bedroom/two-bathroom units.
Avanath is planning improvements to the property that include the addition of LED lighting, landscaping, exterior paint, balcony repair, and asphalt and parking repairs.
Avanath Capital Management has also acquired Cameron Court, a 48-unit affordable seniors housing community in Detroit for $1.34 million.
Built in 2008, the property is 100 percent occupied and consists of one three-story structure totaling 38,784 square feet. The unit mix includes 18 one-bedroom/one-bathroom units and 30 two-bedroom/one-bathroom units.
Avanath will implement a series of renovations to the property including hallway painting, exterior fencing and repainting, new common-area furniture, a community room renovation, and the construction of a new senior wellness center.
Cameron Court is located at 8600 Cameron Street in Detroit, directly across the street from North End Village. In addition to managing both properties, Avanath also currently owns and manages Acclaim at Ford Lake, a 184-unit property located in Ypsilanti, Michigan, approximately 35 miles from Cameron Court and North End Village.