Avanath Capital Management has acquired a mixed-use portfolio containing two multifamily properties with ground-floor retail space in Brooklyn, for $315 million. The portfolio consists of 601 affordable and market-rate residential and commercial units and qualifies for New York City's Rent Stabilization program.
"This acquisition allows us to provide high-quality housing in an area of the country where market-rate rents are notoriously high and the demand for budget-friendly apartment homes is rising," CEO Daryl Carter says in prepared remarks. Thirty-seven percent of the portfolio comprises units that are regulated to serve residents with incomes between 40% and 100% of area median income.
The company plans to complete energy-saving upgrades within the units that comply with New York City's energy ordinances and offer social impact programming for residents, such as after-school programs, computer and technology training, and community forums with elected officials and other government leaders.
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The portfolio also includes 82,681 square feet of parking and 42,643 square feet of retail.
The buildings, which are adjacent to the Barclays Center, are the first Brooklyn-based properties to be managed by Avanath. The company additionally owns 458 units across 26 properties—primarily in Brooklyn, according to Keith Harris, Executive Vice President of Acquisitions for Avanath. "This acquisition broadens our depth considerably in the New York City market, where we now own 28 properties totaling 1,059 units, and in the New York metropolitan area, where we now own 32 properties totaling 1,706 units," he says in prepared remarks.
The mixed-use buildings were constructed in 2017 as part of the ongoing Pacific Park New York Development project, Brooklyn's largest development project to date. Upon completion, the site will host 8 acres of public open space, a new public middle school, 15 residential buildings, and more than 7.3 million square feet of residential, commercial, and retail space.
The two buildings are located at 38 6th Ave. and 535 Carlton Ave.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
