Avanath Development has entered the opportunity zone race. The firm has launched a qualified opportunity zone fund with a target raise of $300 million, which the firm plans to hit in the next six months.
Avanath is a seasoned affordable housing and market-rate multifamily developer and has already been active in several opportunity zone markets. “We started looking after the sites were finalized as opportunity zones, and we realized that of our 70 communities, there were roughly 15 to 18 that were in opportunity zones.
When we started looking at the potential, we had three properties we had considered for redevelopment, and we realized that those deals penciled for opportunity zone investors.” Investors have launched a bevy of qualified opportunity zone funds in the last year, but Avanath is taking a unique approach. “Avanath in some ways is late in launching this fund-not because there aren’t opportunities or deals to be made in these markets, but rather because so many investors have rushed into launching funds.
However, Avanath is happy to take its time in finding quality deals and navigating the new opportunity zone model-which is still new. There is a lot of interest, but there are still regulations that need to be finalized,” says Carter. “We think that particularly people with capital gains to deploy that there is more urgency for them to find a qualified opportunity zone investment.”