Taking a Holistic Approach to Investment

Following the pandemic, investment strategies have shifted. For some, that means reallocating capital to safer assets; for others that means taking a new approach to underwriting to assess risk factors; and for some, it means waiting on the sidelines for the market to stabilize. Whatever the strategy, a holistic approach to investment is essential to getting through the market downturn.

Irvine-based Avanath Capital Management has taken a holistic approach to investment, but believes the practice more important now—during the current cycle downturn—than ever before. A holistic investment approach requires that an investor look at the entire real estate portfolio and financial goals, rather than looking at investments on an asset-to-asset or deal-to-deal basis. This requires that each investment is true to the strategy, helps accomplish the firm’s objectives and meets investment timelines.

At Avanath, this approach applies to both investments and property management. “A holistic investment strategy has always been our approach from the beginning. We believe that you can still have an impact on residents and the community without sacrificing the bottom line,” John Williams, president and CIO at Avanath Capital Management, tells GlobeSt.com.

Today, a holistic approach also requires that investors adapt to new market dynamics. As a result of the pandemic, residents require multiple uses from their living space, and it is a trend that isn’t going to suddenly reverse. “A safe living space is extremely valued by residents, in today’s environment,” says Williams. “An apartment is now a residents office, school, restaurant, church, shopping mall and entertainment center. Now more than ever before, holistic investment is extremely important. We believe that operators should be a steward to their residents.”

Avanath has done that by making a commitment to fund social programs in its properties. These programs include everything from health and wellness to programs for children and families. “By incorporating social programs, health and wellness programs, financial literacy, and after school and mentorship programs for kids, among others, we can create environments that set residents up for success,” says Williams. “This provides a quality lifestyle within reach to our residents and sets up our properties for long-term success.”