Boston, MA. Nixon Peabody is proud to have represented Avanath Capital Management, an institutional fund manager with a focus on workforce and affordable rental housing, in its acquisition of Morton Village Apartments, a 207-unit community located in Boston’s Mattapan neighborhood. Avanath’s acquisition is structured to preserve Morton Village as an affordable housing property for many years to come.
As part of the purchase, Avanath worked closely with the City of Boston to ensure affordability for Morton Village residents. The City will provide $4 million in funds from the Neighborhood Housing Trust and Boston’s Department of Neighborhood Development (DND) to help Avanath keep existing residents in their homes, limit rent increases, and convert the property to a mixed-income, deed-restricted affordable housing community.
Nixon Peabody served as legal counsel for the purchase, which included negotiations on the unique grant and affordability provisions with the City of Boston, special rent protections for existing residents, and financing with CBRE Capital and Fannie Mae.
“We are very pleased to have worked with Avanath in the acquisition of Morton Village, bringing a new high-quality, affordable housing owner to the Boston market,” said Jeffrey W. Sacks, who led the Nixon Peabody team. “Maintaining affordability at this property was of the utmost importance, and meeting that objective is truly a credit to all parties involved.”
Avanath, a socially conscious investment firm, purchased Morton Village from an affiliate of Mirak Properties. The Mirak family, who built the property in 1965, self-managed Morton Village for more than 50 years. In addition to the purchase price, Avanath will spend more than $5 million for renovations to the property.
When the property was listed for sale in June, it attracted national attention from both market-rate and affordable buyers. All current rents at the fully occupied property are below market, which made existing residents—many of whom are seniors and have lived in the complex for decades—vulnerable to displacement. Morton Village comprises four separate four-story elevator buildings, strategically located adjacent to an MBTA commuter rail station and two miles away from two exits on Interstate 93, offering easy access to numerous employment centers.
“We are thrilled to add Morton Village to our existing portfolio of more than 10,000 units across the country,” says Daryl Carter, founder and CEO of Avanath Capital Management. “This was our first acquisition in the Boston market, and it was an honor to work alongside the City of Boston and the Mayor towards a shared mission.”
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