May 23, 2017
Investors paid $73 million for a portfolio of apartments in hot Brooklyn neighborhoods planning to keep the rents relatively low.
“This portfolio is well-positioned to capitalize on the growing demand for quality affordable housing, thereby generating attractive risk-adjusted returns to our investors,” said John Williams, president and chief investment officer of Avanath Capital Management which bought the property with Oak Tree Management.
The 17 properties totaling 198 apartments are located in the rapidly growing Brooklyn neighborhoods of Prospect Heights, Crown Heights, Williamsburg, and Bedford-Stuyvesant. The portfolio includes 115 rent-stabilized units, 79 units with unrestricted rents and four commercial spaces. Average monthly rents in these assets reportedly range from $1,700 to $2,500, roughly half the cost of rental comps in the Brooklyn submarket. Average monthly rents range from $3,000 to $5,500 in the overall area.
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