Avanath Capital Management spent $72.2 million to acquire two affordable multifamily buildings in the area, significantly increasing its footprint in Chicago.
The California-based affordable housing investors bought the 582-unit Hinsdale Lake Terrace in Willowbrook and the 86-unit Drexel Court on Chicago’s South Side, according to RE Journals. California-based DMI Real Estate was the seller, property records show.
Hinsdale Lake Terrace was acquired for $63 million, and the firm paid $9.15 million for Drexel Court.
The acquisition of the properties totaling 668 units brings Avanath’s portfolio in the Chicago area to 840 units, company president John Williams told RE Journals. Avanath plans to upgrade both facilities while keeping them affordable for area families.
The company chose to expand in Chicago because of of it’s “rapid economic revitalization” that drives rent prices up and causes a “dire need” for affordable housing, Williams said.
Hinsdale Lake Terrace, 16W150 Honeysuckle Rose Lane in Willowbrook, includes larger units for families and a recreation center that’s occupied by a nonprofit that provides tutoring to at-risk youths. Avanth’s plans for the complex include updating community spaces and other capital improvements.
Drexel Court Apartments, 6140 South Drexel Avenue, is a six-story building in Chicago’s Woodlawn neighborhood. Avanath plans to include more common areas and repurpose a management office and meeting area into amenities such as a fitness center.
The acquisitions come as Chicago seeks to improve its affordable housing options.
Though Chicago is one of the most affordable housing markets in the country, much of the housing development in recent years has been in high-end multifamily buildings in upscale areas[ [Re Journals] — Joe Ward