New York City – Avanath Capital Management, a private real estate investment management firm, has purchased two multi-family communities in Brooklyn. The Irvine, California-based company purchased the two properties, totaling 601 apartments and 42,643 square feet of ground floor retail space, for $315 million. The properties also include a parking area of 82,681 square feet. The seller was not disclosed, but several outlets report that the seller is Greenland USA, a China-based residential and commercial real estate developer.
The two communities are located on 38 6th Ave. and 535 Carlton Ave. Both communities are located adjacent to Barclays Center, the main arena of the Brooklyn Nets NBA franchise. Just over a third of the units are reserved for residents whose incomes are between 40 percent and 100 percent of the area’s median income (AMI).
The buildings were constructed in 2017 as part of the ongoing Pacific Park New York development initiative, which Avanath Capital says is Brooklyn’s largest development to date. In addition to the two multi-family properties, when completed, the site will host eight acres of public open space, a new public middle school, 13 other apartment buildings and more than 7.3 million square feet of residential, commercial and retail space.
Hotel amenities include fitness centers, yoga studios, outdoor terraces, libraries, entertainment suites, and children’s playrooms. Retail tenants include home decor retailer Cain Sloan at 535 Carlton, New York-Presbyterian Brooklyn Methodist Hospital Clinic and Wonderforest Nature Preschool at 38 6th Ave.
Avanath Capital plans to implement new programs for both properties, which will likely include after-school programs, computer and technology training and community forums with elected officials and other government leaders.
“We will complete energy savings upgrades within the units, comply with New York City energy ordinances, invest in green assets for buildings and deliver social impact programs for residents,” says John O’Connor, director of acquisitions at Avanath Capital.
Avanath Realty Inc. will Affiliated with the new ownership of the Department of Communities. This will be the first asset to be managed by Avanath Realty in Brooklyn.
With this acquisition, Avanath Capital now owns 28 properties in New York City totaling 1,059 units, and 32 properties totaling 1,706 units in the New York City metropolitan area.
“We are excited that the acquisition of these two towers will be our opportunity to introduce Avanath Communities to Brooklyn,” says Keith Harris, executive vice president of acquisitions for Avanath Capital. “This acquisition greatly expands our depth in the New York City market.”
– John Nelson