Avanath raises $140m for affordable housing fund

Avanath Capital Management has raised $140 million for its Affordable Housing III fund, according to IREI’s FundTracker database.

Affordable Housing III is a value-added fund that follows a similar strategy to that of its predecessor, Avanath Affordable Housing II, which targets affordable and workforce housing assets across the United States, specifically apartment communities. The fund is seeking to raise $300 million in total equity commitments, with a 13 percent to 15 percent target net return for its investors.

Fund II held a final close of $200 million in July 2015 and has invested in affordable and workforce multifamily assets in California; Washington, D.C.; New York City; Orlando and Naples, Fla.; and Cary, N.C. Avanath Affordable Housing I had a final close in April 2012, raising $120 million.

Avanath’s most recent transaction was the acquisition of Grand Pointe Park, a 156-unit w