Austin Blueprint Calls for 60K Low-Income Units
Avanath Capital Management LLC recently acquired Blunn Creek, a 280-unit affordable housing community, for $35.15 million, in a submarket with limited affordable housing options but high demand.
AUSTIN, TX—Blunn Creek is a low-income housing tax credit multifamily community comprising 12 three-story structures and a community building. It was built in 2002.
Avanath Capital Management LLC recently acquired the 280-unit affordable housing community for $35.15 million. The property is 96.4% occupied and 98.6% preleased, with historical occupancy averaging 98% during the last three years.
“Avanath recognized this as an opportunity to purchase a sizable community in a superior location in a submarket with high demand for affordable housing and limited affordable housing options,” says John Williams, president and CIO of Avanath Capital Management.
Williams notes that according to Austin’s Strategic Housing Blueprint, the city will need 60,000 new housing units for low-income families, plus another 75,000 market-rate units to meet its housing needs for the next decade.
The low-income housing tax credit is the federal government’s primary program for encouraging the investment of private equity in the development of affordable rental housing for low-income households. Since its creation in 1986, this program has helped to finance more than 2.5 million affordable rental-housing units for low-income households, GlobeSt.com learns.
Avanath Capital Management LLC is a private real estate investment manager and registered investment advisor.