Avanath/Oak Tree make $73m foray into Brooklyn residential market
Avanath Capital Management and its partner Oak Tree Management have acquired a 17 building affordable housing portfolio in Brooklyn for $73 million. The assemblage encompasses 198 units located in the neighborhoods of Prospect Heights, Crown Heights, Williamsburg and Bedford-Stuyvesant. They include 115 rent-stabilized units, 79 free-market units and four commercial spaces. Rents in these properties average between $1,700 to $2,500 while average rents in Brooklyn run from $3,000 to $5,500 per month. “This portfolio presented an attractive opportunity to double our footprint in one of the most dynamic markets in the nation,” stated Avanath Capital Management president and chief investment officer John Williams. “From an investment standpoint, as rents soar in the New York City metro area, there is a unique opportunity to cater to the demand for more affordable housing options by preserving the existing stock of affordable units. Overall, this acquisition advances our mission of preserving and enhancing affordable housing in supply-constrained markets with strong growth fundamentals.”