Avanath Affordable Housing Renaissance Fund

Date: 2022

Asset Class: Real Estate

Description:  Avanath Affordable Housing Renaissance Fund invests in the preservation of affordable housing. Avanath makes equity investments to acquire and preserve multifamily affordable housing for low-income communities located in high-growth markets. In addition to preserving affordability, Avanath improves the environmental performance of its properties and enhances the wellbeing of residents through programming and engagement.

Why We Invest: The market for affordable housing faces massive undersupply. There are 20 million cost-burdened households yet only 11 million affordable units in supply. Avanath addresses the housing crisis in the US through the preservation of government-designated affordable housing. Currently, many of these properties are facing the expiration of their Low Income Housing Tax Credit (LIHTC) benefits, with approximately 750,000 units set to expire in the next 10 years. Avanath acquires these properties, extends their affordability designations, reinvests in their restoration, and provides wrap-around services to improve residents' wellbeing. Avanath has executed this strategy since 2012, raising $1.4bn in equity across its four prior funds. Funds I and II are delivering strong returns of 16% and 11% net IRR and 1.8x and 1.7x net MOIC since inception, respectively.