Avanath Capital Management, LLC, an institutional fund manager that has invested in over $1 billion in affordable and workforce housing properties throughout the United States, has acquired Grand Pointe Park, a 156-unit workforce housing asset in the Poughkeepsie submarket of the greater New York metro.

“As rents continue to soar throughout major metropolitan areas such as New York City, many renters are being priced out of urban cores and are migrating to the suburbs,” explains John Williams, President and Chief Investment Officer of Avanath. “This regional movement is driving tremendous demand for more affordable communities in commuting distance to expensive metros, making these assets ideal targets as strong long-term investments.”

Grand Pointe Park is located just three miles from Poughkeepsie Station, which provides train service to Grand Central Station in New York City in 90 minutes.

“The average rent at this community is under $1,500, which is less than half of the average rent in New York City for a comparable apartment,” continues Williams. “By acquiring and repositioning this asset, we can provide quality housing that is much more affordable for the workforce in this region, while also achieving strong, risk-adjusted returns for our investors.”

In addition to providing access to employment opportunities in New York City, the property also offers close proximity to jobs in the local Poughkeepsie community.

Poughkeepsie’s growing chip manufacturing, technology, and healthcare sectors are driving employment throughout the region, which translates to enormous demand for quality workforce housing to support middle-class service workers. Major employers in the area include IBM, GlobalFoundries, and Health Quest, among others.

Williams notes that Grand Pointe Park will serve a diverse demographic ranging from middle-income families to seniors earning roughly 60 percent of the region’s AMI. The property offers a competitive unit mix, with 75 percent of floor plans consisting of two- and three-bedroom units to accommodate families.

“There is tremendous pressure on low and middle-income families when it comes to finding housing that is affordable,” continues Williams. “This gap in the market presents an opportunity to fill a need while also capitalizing on unmet demand by investing in affordable housing with larger units. While many investors are focused on catering to the single millennial renter, there is an even deeper need for larger apartments to house families.”

Grand Pointe Park, which was 98 percent occupied at acquisition, features high-quality construction with upgraded interiors and attractive curb appeal. Amenities include a clubhouse, swimming pool, fitness studio, basketball court, extra storage closets, and fully equipped kitchens, among others. Avanath plans to execute a moderate rehabilitation plan that includes exterior upgrades to the clubhouse, pool deck, parking lots, and roof repairs.

            “This acquisition is well-aligned with our investment strategy of enhancing asset quality without sacrificing affordability, enabling us to generate attractive risk-adjusted returns to our investors while also positively impacting entire communities in need of high-quality workforce housing,” explains Williams.

Avanath purchased the property from a repeat private seller for $19.3 million. Dmitry Gourkine of CBRE Affordable Housing represented both the buyer and the seller in this deal.

Avanath secured a $13 million loan from Fannie Mae to finance the acquisition. The ten year-loan was structured with a loan-to-value of 67 percent.

Grand Pointe Park is located at 161 Clubhouse Drive in Poughkeepsie, New York.

Since 2008, Avanath has invested in the acquisition and operation of 60 affordable and workforce housing assets totaling over 7,000 units across the U.S., targeting supply-constrained markets with strong economic growth and solid fundamentals. The firm’s mission is to generate both financial and social returns by investing in both property level renovations and social services that improve quality of life for its residents.