Avanath launches ​multifamily opportunities entity

Avanath Capital Management has launched a new entity focused on new multifamily development opportunities. The entity initially will be called Avanath Development and will be led by Jun Sakumoto, who has been promoted from Avanath’s COO to president of the newly formed entity.

 Avanath Development’s initial focus will be on four multifamily development projects, three that exist within the firm’s portfolio and a new development in Detroit. The projects currently existing in Avanath’s portfolio that will launch the new entity include Arbors at Cary in Cary, N.C.; Woodside in Ontario, Calif.; and Ravenna in Orlando.

“There is a great need for the development of affordable, workforce and value-oriented apartment communities in markets throughout the country,” said Daryl Carter, founder, chairman and CEO of Avanath Capital Management. “Now is the right time for us to introduce our own division that is devoted to meeting that need.”

 Multifamily development projects led by Avanath Development, will be capitalized by investors seeking development projects in opportunity zones. The tax legislation surrounding this new federal initiative benefits investors, developers and the communities in which the opportunity zone development takes place.

“The recent opportunity zone legislation will fuel capital flows into the affordable-housing investment sector,” said Carter.

 One of those strategies is a venture Avanath is pursuing with a tax-oriented investment firm to launch an opportunity zone fund. While the initial capitalization of this fund will be $200 million, Carter believes the fund has the potential to evolve into a $1 billion enterprise over the next five years.

Along with Sakumoto’s promotion, Avanath has instituted additional organizational changes within the company that represent the firm’s remarkable growth over the past five years. Effective immediately, those changes include:

• Malachi McKinney, currently vice president, asset management, will transition from asset management to Avanath Development. 
• Camille Longino, currently CFO, will be promoted to COO. 
• Wes Wilson, currently vice president, accounting, will be promoted to senior vice president and CFO.
• Beverly Quinn, assistant controller, will be promoted to property controller, overseeing all property-level accounting.  
• Jake Drexl, senior fund accountant, will be promoted to fund controller. 
• Caren Nims, project coordinator, will be promoted to project manager.
• Pat Gaudin has been hired as senior vice president of human resources.
• Avanath’s human resources area will now report to Ron Juskiewicz, vice chairman and chief compliance officer.