US property investor Avanath Capital Management has acquired a $119m (€110m) multifamily community with ground-floor retail in Chicago.
Avanath said it has bought the fully-occupied Lincoln Park Plaza, a 256-unit multifamily community located in the Lakeview submarket of Chicago, Illinois.
Built in 1981, the asset at 600 West Diversey Parkway consists of one 17-storey building with 190,950sqft of residential space and 26,287sqft of retail space.
Avanath said it will improve the property by updating the parking garage and upgrading key systems, building systems and structural elements. The firm also expects to upgrade the property with a high-efficiency boiler system and LED lights.
Lincoln Park Plaza represents Avanath’s sixth acquisition in Illinois, its fourth in Chicago, and its second mixed-income, mixed-use asset in the city.
Daryl Carter, Avanath Capital Management’s founder, chairman and CEO, said: “With limited new construction and skyrocketing housing costs, Redfin has named Chicago as one of the top home-price markets in the country for 2023, increasing demand for affordable housing in the city.
“Because Lincoln Park Plaza features 147 affordable units protected by a renewable HAP [housing assistance payments] contract that provides Section 8 rental subsidy to 57% of the total residential units, this transaction enables us to continue offering attractive and affordable apartment homes to qualified Chicago residents in a high-rent area.”
John R Williams, president and CIO at Avanath Capital Management, said the acquisition of Lincoln Park Plaza allows Avanath to expand its Chicago portfolio to a total of 557 units and its portfolio in the state of Illinois to 1,319 units.
Williams said: “We have identified an opportunity to own and manage a community that is consistently above 97% occupied, performed well throughout the COVID-19 pandemic, and has a lengthy interest list of prospective residents, in addition to providing attainable housing to renters in this trendy downtown Chicago enclave.”
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