March 21, 2017
It’s not a value-added investment in the usual sense. However, Avanath Capital Management has a long-term plan to keep the 156 apartments at Grand Pointe Park, in Poughkeepsie, NY, relatively affordable. The developer recently paid $19.3 million for the property.
Grand Pointe is not part of a formal affordable housing program. Avanath simply paid a price low enough, about $124,000 per unit, so that it can achieve what it calls a “strong, risk-adjusted return for our investors” by managing the property well, with modest rent increases and a moderate renovation.
The apartments are in relatively good condition, and were 98% occupied at the time of sale. The average rent is under $1,500, less than half the average rent for a comparable apartment in New York City, a 90-minute train ride away.
“By acquiring and repositioning this asset, we can provide quality housing that is much more affordable for the workforce in this region,” said John Williams with Avanath.
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