Avanath Capital Management, LLC, a private real estate investment management firm, announced the acquisition of City View, a mixed-use, mixed-income property located in Orlando for $62.5 million.
City View is a unique property that comprises 266 multifamily units and 24,865 square feet of retail space, according to Daryl Carter, Founder, Chairman, and CEO of Avanath. The firm acquired the property through a combination of its commingled fund equity and financing from JPMorgan Chase and Fannie Mae.
“This acquisition presents a rare opportunity to add a quality asset to our portfolio in a flourishing market, where Avanath is well positioned to create value and contribute to the local community,” says Carter. “With this investment, we will preserve much-needed affordable housing while elevating the quality of resident living spaces and common areas, as well as improving the retail spaces to serve the needs and interests of the growing Downtown Orlando market.”
In alignment with Avanath’s mission to acquire, own, renovate, and operate affordable and value-oriented communities, 131 of 266 units are designated affordable, with the property’s rent restrictions continuing until 2050. The firm has taken steps to preserve the current designations of 28 units at 50% of area median income (AMI), 79 units at 60% of AMI, and 24 units at 120% of AMI, adds Carter.
“Ensuring access to quality affordable housing in this market is essential, especially as Downtown Orlando’s median rents have increased 19.3% over the past year,” continues Carter.
“In collaboration with Fannie Mae, we are proud to support Avanath with the acquisition of City View to preserve 266 multifamily units of affordable housing and their plans to enhance the local community offerings,” said Vince Toye, Head of Community Development Banking and Agency Lending for JPMorgan Chase. “Working with Avanath, this is a great example of how we can help address critical housing needs to stabilize and strengthen our communities across the US.”
The acquisition of City View brings Avanath’s current Greater Orlando portfolio to six properties totaling more than 1,500 units, at a key time when growth trends in the region continue. Between April 2021 and March 2022, renters absorbed over 16,000 units and is expected to outpace most major metros in job growth in 2022, according to Marcus & Millichap.
John R. Williams, President and CIO of Avanath, says: “We’ve seen some of our highest property performance in Greater Orlando in recent years. Our team identified the opportunity to create additional scale and efficiency through building our portfolio in this region as it continues on a strong growth trajectory.”
Avanath plans to complete interior renovations of the market-rate units to bring finishes and rents in-line with those of market competitors. These will include new and modern aesthetics with the addition of plank flooring, quartz countertops, updated paint, new fixtures, and updated appliances. Additionally, the firm will upgrade City View’s common areas and retails spaces and replace the roof, HVAC, and boiler, given the property’s current age of fifteen years.
“Through these improvements, we can generate additional revenue that will create sustained opportunity to provide top-quality housing at both market rate and affordable rents,” explains Williams, who notes that Avanath will also improve on-site operations through enhanced resident services and community management.
Carter adds: “As part of our commitment to environmental and social impact, we will take energy and water efficiency measures through installation of LED lighting fixtures throughout the common areas of the community and low flow faucet aerators, showerheads, and toilets. Our team will also conduct a resident survey at the property to better understand the needs and wants of residents with respect to social services and other activities.”
The tenant mix of City View’s 13 storefronts currently includes boutique retail, restaurant, deli, financial education/literacy, and the Orlando Police Department. The retail spaces are also experiencing demand from start-ups, minority-owned businesses, boutiques, and regional businesses.
City View is ideally located within walking distance from downtown restaurant, retail, and entertainment options. Popular destinations including the Amway Center (home of the Orlando Magic) and Exploria Stadium (Orlando City and Orlando Pride soccer) are within a half block distance from the property, while the Citrus Bowl is located within one mile. The community’s location also includes the rich history of the historic Parramore District. Known as a thriving black community filled with successful businesses in the early 20th Century, the Parramore District’s entertainment and social impact is still relevant today.
City View, which is currently 96.9% occupied, features a mix of one- and two-bedroom units with amenities including 9-foot ceilings, in-unit laundry, and central HVAC. In addition, community amenities include a state-of-the-art fitness center, business center, and two resident lounges.
City View is located at 595 Church Street in Orlando. Marcus and Millichap’s Affordable Housing Advisors marketed the transaction.
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