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IRVINE, CA—With so many renters being priced out of the better apartment markets, affordable housing is more important than ever, John Williams, president and CIO of Avanath Capital Management, tells GlobeSt.com. As GlobeSt.com reported last week, the firm closed eight affordable housing acquisitions totaling more than 1,700 units in 2014, making it one of the largest purchasers of affordable assets in the calendar year. We spoke with Williams about this market sector and where the opportunities lie.

GlobeSt.com: Would you consider your firm to be in acquisitions mode currently?

Williams: Very much so. We're investing or second commingled investment fund in this space. We have half committed, and we have another $100 million to invest in 2015. This is $100 million in equity, $300 million in transactions.

GlobeSt.com: What do you look for in affordable-housing communities to purchase?

Williams: The markets we target are markets that almost any market-rate apartment developer would look at: markets that are high growth and/or high expense. There's a disconnect between what housing prices are and what market-rate and affordable prices are. There's a definitive need for affordable housing in the Bay Area, New York, Florida, Dallas and L.A. These are markets with high growth and a high barrier of entry.

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GlobeSt.com: Where do the greatest opportunities lie in this sector?

Williams: What our investors like about our portfolio is there is enormous demand. Our properties stay 99% occupied with very little turnover vs. market-rate apartments, which can have a turnover rate of 60% to 70% a year. That's a very transient market. We have strong residents at our properties that stay with us a long time and don't leave. We love the space. There are few institutional funds that seek assets in this space, and we're certainly looking for new opportunities in our target markets.