Avanath Capital Expands East Coast Footprint With 273 Affordable Properties In NJ and FL
Both New Jersey and Florida are undergoing rapid economic growth and expansion, as well as experiencing significant population gains, says John Williams, president of Avanath, leading to increased demand for affordable housing options across both states.
EDISON, NJ AND FORT LAUDERDALE, FL —Avanath Capital Management, a private real estate investment manager and Registered Investment Adviser, has acquired two affordable multifamily properties in New Jersey and Florida totaling 273 units at a combined sale price of $29.36 million.
Avanath acquired Menlo Manor, a 240-unit affordable senior housing community in Edison, NJ, and Coral Ridge Isles, a 33-unit workforce housing community in Ft. Lauderdale, FL. Both properties were acquired through Avanath’s institutional fund, Avanath Affordable Housing III.
“We are focused on acquiring and preserving affordable and workforce housing assets in strong growth markets across the country, including areas across the East Coast,” says John Williams, president of Avanath Capital Management. “This is our second acquisition in New Jersey, and our ninth in Florida. Earlier this year, we acquired Centennial Court, a 101-unit senior apartment community in Wharton, NJ, which brings our holdings in the New Jersey/New York metro area to 1,045 units. We also currently own 1,647 units in Florida.”
Both New Jersey and Florida are undergoing rapid economic growth and expansion, as well as experiencing significant population gains, Williams says. This has led to increased demand for affordable housing options across both states.
“Both of these acquisitions will allow us to maintain housing affordability in these cost burdened areas, as well as amass economies of scale to drive down operating costs, and better serve residents,” says Williams.
Menlo Manor is a 240-unit, five-story affordable apartment community for seniors in Edison, New Jersey. Constructed in 1980, the property is extremely well-maintained and located in an exceptionally strong submarket, according to Williams.
“Edison has historically benefited from its proximity to New York City, and continues to outperform other areas of Central New Jersey,” says Williams. “Because of this, there is an extremely strong demand and need for affordable housing options for seniors throughout the area.”
Williams explains that seniors want to be in dense regions that allow them to be close to their families.
“This is why we strategically acquire properties that are located in areas near major urban centers and amenities,” says Williams, noting that Menlo Manor is near Interstate 287, major employment hubs, retail centers, schools and medical institutions. “This allows us to provide deeply affordable housing to seniors in areas where it is most needed.”
The apartment community features a large community room and exterior courtyard, library, dining area, community kitchen, automatic front doors and various transportation services.
The property, located at 161 Inman Avenue in Edison, is comprised of a mix of studios, one-, and two-bedroom units. The seller, Jeff Spragens, was represented by Alex Medeiros of CBRE.
Coral Ridge Isles, a 33-unit workforce affordable housing community at 1400 NE 53rd Court in Fort Lauderdale, was acquired in partnership with Oak Tree Residential. Located in the Coral Ridge Isle neighborhood, Coral Ridge Isles is surrounded by large single-family homes, and is one of the only remaining apartment communities in the region that has not been converted to condos, according to Williams.
“This has resulted in significant demand for quality workforce housing in the area,” he explains. “In addition, much of the multifamily development throughout the Fort Lauderdale submarket has been focused on luxury multifamily communities that cater to residents that make in excess of $100K per year, creating a significant lack of affordable supply. Coral Ridge Isles provides the average working American throughout the region with quality and affordability.”
Avanath plans to implement a series of renovations to the property including upgrades to interior units, exterior renovations such as new paint and landscaping to improve the apartment community’s appeal, as well as the addition of a fitness center and storage lockers, among other amenities.
“Our goal with all of our properties is two-fold,” says Williams. “We strategically implement renovations that will enhance the long-term value of the property, as well as improve the lives of our residents. By upgrading the units and integrating modern, up-to-date amenities, we can create affordable, high-quality living experiences for residents.”
The seller, a private investor, was represented by Kirk A. Felici of Marcus & Millichap.