Avanath Capital Management, the Irvine, California-based private real estate investment firm, has held a final closing at $200 million for its second affordable housing fund, the firm announced.
It said it attracted the capital commitments for its Avanath Affordable Housing II Fund from 10 investors, including three state pension funds, two banks, three insurance companies, one foundation and one family office.
Avanath’s fundraising has taken the best part of two years. The firm held a first closing in December 2013 and a second last May.
The firm is using the proceeds of the fundraising for investments in affordable and workforce housing assets across the US.
To date, 13 assets have been acquired, including in Southern and Northern California, Washington DC metro, New York City metro, Orlando and Naples, Florida and Cary, North Carolina.
Currently, the fund has about $50 million of equity remaining.
Should the fund’s strategy be executed according to plan its investors can expect a return of 13 to 15 percent net.
John Williams, Avanath’s president and chief investment officer, said: “Six of our 10 investors are repeat investors, which speaks to the strength of our first fund. We are also gratified that our fund has appeal across such a broad spectrum of investor types.”
“The breadth of financial organizations involved in our second fund also shows support for the value of the social benefits we provide. In the communities surrounding our investments, we are raising the bar for the quality of affordable housing in areas where it is most needed.”
Avanath, which was founded in 2008, raised $120 million for Avanath Affordable Housing I, with a first close of $51.53 million in October 2010 and a final close in mid-2011.