Avanath Capital Management has invested $73m (€64.9m) in a Brooklyn affordable housing portfolio.

The fund manager has bought 17 apartment buildings totaling 198 units in partnership with New York-based Oak Tree Management.

The assets were sold by a private investor.

John Williams, president and chief investment officer of Avanath, said the portfolio presented a “rare opportunity to gain a substantial stake in one of the most dynamic markets in the nation”.

He said: “Brooklyn’s explosive economic growth, population gains, and cultural renaissance are driving an influx of investment capital to this market, which consistently ranks as one of the most expensive places to live in the US.”

Avanath and Oak Tree will look to renovate assets in the portfolio.

“This acquisition will allow us to maintain housing affordability in one of the most expensive submarkets in the country, while also doubling our existing Brooklyn portfolio and amassing economies of scale in ownership,” Williams said.

“Based on strong market fundamentals, this portfolio is well positioned to capitalise on the growing demand for quality affordable housing, thereby generating attractive risk-adjusted returns to our investors.”