Avanath Completes First OZ Fund Acquisition, Buys $19M Workforce Community in Cary
Avanath Capital Management, LLC, has completed the $19.2-million acquisition of the Arbors at Cary, a 248-unit affordable housing community in the Raleigh metro area of Cary, NC. PGIM Real Estate served as Avanath’s equity partner and lender.
The firm plans to redevelop the 1967- and 1971-constructed community under opportunity zone legislation, its first effort.
“The goal of this investment is to improve low-income communities in designated opportunity zones and to defer and reduce current taxes and provide long-term tax-free investment gains for qualified investors,” said Avanath CEO Wesley Wilson. “Our platform is designed to acquire quality assets in strong growth markets that need expansion and/or renovation.”
“When housing requires substantial renovations there are often few options to make the improvements while still serving the current community,” added Luke Apicella, VP at PGIM Real Estate. “We think participating in federal and local initiatives is an effective way to turn properties and/or locations that have fallen out of favor into places that thrive.”