NEW YORK CITY — Avanath Capital Management, a private real estate investment management firm, has purchased two multifamily communities in Brooklyn. The Irvine, Calif.-based company purchased the two properties, which total 601 apartments and 42,643 square feet of ground-floor retail space, for $315 million. The properties also include 82,681 square feet of parking. The seller was not disclosed, but multiple outlets report the seller as Greenland USA, a residential and commercial real estate developer based in China.
Located at 38 6th Ave. and 535 Carlton Ave., the two communities are situated adjacent to Barclays Center, the home arena of the Brooklyn Nets NBA franchise. A little over one-third of the units are reserved for residents with incomes between 40 percent and 100 percent of area 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 project to date. In addition to the two multifamily properties, at full completion the site will host eight acres of public open space, a new public middle school, 13 other residential buildings and more than 7.3 million square feet of residential, commercial and retail space.
Amenities at the properties include fitness centers, yoga studios, outdoor terraces, libraries, entertainment suites and children’s playrooms. Retail tenants include home décor retailer Cain Sloan at 535 Carlton and a New York-Presbyterian Brooklyn Methodist Hospital clinic and Wonderforest Nature Preschool at 38 6th Ave.
Avanath Capital plans to implement new programming for both properties, which potentially could include after-school programs, computer and technology training and community forums with elected officials and other government leaders.
“We will be completing energy-saving upgrades within the units, complying with New York City’s energy ordinances, investing in green assets for the buildings and offering social impact programming for residents,” says John O’Connor, acquisitions director at Avanath Capital.
The new ownership’s management affiliate, Avanath Realty Inc., will operate the communities. These will be the first Avanath Realty-managed assets in Brooklyn.
With this acquisition, Avanath Capital now own 28 properties in New York City totaling 1,059 units, and 32 properties totaling 1,706 units overall 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 broadens our depth considerably in the New York City market.”
— John Nelson