San Francisco-based nonprofit developer Bridge Housing and investment firm Avanath Capital Management are partnering to create a jointly owned property management company for affordable housing.
With a portfolio encompassing around 30,000 homes, Brighthaven will be one of the largest managers of below-market housing in the United States.
Property management services for affordable and workforce housing developments tend to be fragmented, forcing residents to rely on outdated services, the companies said in a press release. They said Brighthaven would seek to prioritize the experience of residents and maximize the positive impact of such housing projects on communities.
The new company will provide services including leasing and marketing, financial management, compliance and regulatory reporting, facility management, and resident engagement.
“We are building a best-in-class property management platform dedicated to uplifting communities while delivering cutting-edge technology, dedicated executive leadership, and robust security and maintenance programs to better serve our residents,” Bridge Housing President and CEO Ken Lombard said in a statement.
The new firm comes amid growing investor interest in creating and preserving affordable housing in the United States as home prices continue to soar and more Americans are priced out of homeownership. U.S. home values have risen more than 50% since the start of the pandemic, according to the S&P CoreLogic Case-Shiller Home Price Indices. Meanwhile, renter cost burdens have reached record highs, per a 2024 report from Harvard’s Joint Center for Housing Studies.
Behind the companies
Bridge Housing is a major nonprofit developer that has created some 23,000 homes in California, Oregon and Washington since it launched in 1983. Its $4 billion portfolio comprises nearly 15,000 apartments that house more than 30,000 residents, with more than 10,000 additional units in the pipeline along the West Coast, a region that includes some of the priciest housing markets in the United States.
The company has taken part in large public housing revitalizations such as a $1 billion redevelopment effort of Jordan Downs, a sprawling development built in the 1940s that is one of the largest public housing complexes in Los Angeles. Jordan Downs is in the midst of a transformation that includes doubling the number of residential units and adding retail and community spaces along with new parks and open spaces for residents.
Bridge Housing also recently launched its first private equity fund for affordable housing. Bridge said it is on course to raise $350 million of equity, which it thinks will enable around $1 billion worth of investment potential to acquire and create affordable and workforce housing in urban areas. KeyBank and BMO are investing $25 million apiece in the fund.
Southern California-based Avanath Capital Management acquires and operates affordable and workforce housing nationwide, partnering with institutional investors. Its property management arm is Avanath Communities.
"We are focused on providing opportunities for individuals, particularly those in underserved communities, to improve their lives," Avanath founder and CEO Daryl J. Carter said in a statement.
Development of affordable housing remains cost-prohibitive in many places. In Los Angeles, the average cost to build a subsidized unit exceeds $1 million, nearly double the cost in Texas, Arizona and Georgia, according to a federal report.
San Francisco is also woefully short of affordable housing. The city is on the hook to build 82,000 housing units by 2031 as part of its plan to meet state-mandated requirements to help solve California’s housing shortage.