Final Closing of “Avanath Affordable Housing III” and “Avanath III NY Co-Investment” Funds
JANUARY 2018
Accord Europe Limited served as the exclusive European capital advisor in connection with the offering of Avanath Affordable Housing III.
Below is the press release issued by Avanath Capital Management, LLC, the funds’ sponsor:
Avanath Capital Management, LLC, a private real estate investment manager and Registered Investment Adviser, has announced the final close of both its “Avanath Affordable Housing III” and “Avanath III NY Co-Investment” Funds with $388 million in equity commitments, according to Avanath’s President and CIO John R. Williams.
“Combined, the funds are two of the largest affordable housing funds in the country, enabling us to further our investment strategy of acquiring and preserving affordable housing assets in supply-constrained markets with high barriers to entry that are poised for strong job, income and economic growth,” says Williams.
With this closing, Avanath has almost doubled its equity commitments from its Fund II, which had its final closing of $200 million in July 2015.
“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,” explains Williams. “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.”
Avanath’s Funds are comprised of a total of 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.
“We are fortunate to have a number of repeat investors who understand our platform and have seen the benefits of our strategy first-hand,” explains Daryl J. Carter, Avanath’s Founder, Chairman and CEO. “Further, 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.”
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 several months.
“We have more than 50 percent of the total Fund III capital remaining to invest in additional affordable and workforce investments,” says Williams. “We’ve already seen an increase in value by more than 11 percent in our early assets acquired in Fund III during our first year of ownership, and anticipate similar results with additional assets acquired in the fund.”
Avanath Capital Management currently has more than $1.2 billion in assets under management totaling 42 apartment communities and 7000 units.
ABOUT AVANATH CAPITAL MANAGEMENT
Avanath Capital Management is a privately-held, vertically integrated investment firm managing real estate and real estate-related investments generating attractive risk-adjusted returns through current income and capital appreciation from its investments. The firm is also a Registered Investment Adviser and provides property management services through its two affiliates, Avanath Property Management and McKinley-Avanath Property Management.
Founded by Daryl J. Carter, the Avanath management team averages 25 years of experience and has successfully guided investment funds in defining growth opportunities and delivering attractive returns. Avanath professionals have real estate operating expertise and long-standing relationships with strong local, regional and national sponsors that can access investment opportunities aligned with Avanath's initiatives. Further information is available at www.avanath.com.
ABOUT ACCORD EUROPE LIMITED
With headquarters in San Francisco and additional offices in Chicago and London, Accord Group Holdings (“Accord”) harnesses a powerful combination of capital markets, investment management and principal investment capabilities for a wide variety of participants in the real estate private equity industry globally. Through Accord Europe Limited, its affiliate in the UK, Accord provides investment advisory and arranging services to its clients in Europe. Further information is available at www.accord-group.net.
For Avanath press enquiries, please contact:
Katie Clendening/Lexi Astfalk, Brower, Miller & Cole
+1 (949) 955-7940
kclendening@browermillercole.com
For Accord company enquiries, please contact:
Paul Jackson, Accord
+44 203 598 9704
pjackson@accord-group.net
