Daryl Carter: A Trailblazer in Affordable Housing and Diversity in Real Estate

On a recent summer afternoon in Manhattan, Daryl Carter, the founder, chairman, and CEO of Avanath Capital Management, found himself in an unexpected yet familiar situation: being recognized on the bustling streets of Lexington Avenue. The passerby, a former Freddie Mac employee, sought just a moment of Carter’s time, illustrating the profound impact he has made in the real estate industry. This encounter is a testament to Carter’s reputation as a leader and advocate for diversity in real estate, particularly for people of color.

A Journey of Advocacy and Mentorship

Carter’s journey began 41 years ago in the real estate department of Continental Illinois Bank in Chicago. Throughout his career, he has been a staunch advocate for increasing diversity within the industry. “We need the pipeline of people coming in,” he emphasizes, highlighting the importance of mentoring young professionals of color. At Avanath, which is named after his daughter Ava and son Nathan, Carter has made it a priority to hire diverse summer interns, ensuring that the next generation has the exposure and opportunities necessary to thrive.

His commitment to mentorship is exemplified by his relationship with Buwa Binitie, founder and CEO of Dumas Collective. Binitie describes Carter as an “awe-inspiring unicorn figure” who provided him with invaluable guidance during his internship. “Daryl’s remarkable success has not only given us hope but has ignited our dreams to reach unprecedented heights,” he states, underscoring Carter’s role as a beacon of inspiration for aspiring leaders.

Dionne Nelson, president and CEO of Laurel Street, echoes this sentiment, noting that Carter’s success is never viewed in isolation. “He has never seen his success in isolation,” she remarks, emphasizing his natural inclination to uplift others in the industry. Faron Hill, chair of the ULI Foundation, adds that Carter’s passion for housing and community building is evident in every conversation, as he generously shares his knowledge and experiences.

Building Avanath Capital Management

Before founding Avanath in 2008, Carter co-founded Capri Capital Finance, which managed $8 billion in real estate equity and debt investments. Avanath has since carved a niche in affordable housing, focusing on investments through an Environmental, Social, and Governance (ESG) lens. The firm’s holistic approach not only aims to minimize negative environmental impacts but also fosters community engagement through daily programming and activities for residents.

With $3.7 billion in assets under management and properties in 14 states, Avanath has established itself as a leader in affordable housing. Carter’s foresight in recognizing the potential of affordable housing as a stable investment has positioned Avanath as a key player in the sector. Victor MacFarlane, executive chairman of MacFarlane Partners, recalls their first meeting and describes Carter as “memorable,” noting his charisma and ability to identify emerging trends in the market.

Carter’s dedication to affordable housing is deeply personal, rooted in his upbringing. His parents instilled in him the importance of housing stability, which drives his commitment to creating safe, well-managed, and affordable housing for communities of color. “It’s important to me—particularly in communities of color—to create very safe, well-managed, well-maintained housing,” he asserts.

A Kindness Approach to Property Management

Carter’s management philosophy is grounded in kindness and respect for residents, regardless of their income. Avanath recently received the Certified Organization for Resident Engagement and Services (CORES) certification, reflecting its commitment to resident engagement. Carter believes in offering more than just a stable place to live; he aims to uplift residents and enhance their quality of life.

This approach has resulted in a low turnover rate of 14% for Avanath’s properties, significantly lower than the industry average of 40% to 60%. Carter attributes this success to the strong sense of community fostered within Avanath’s properties, where neighbors know each other and feel safe. “As low a turnover as you can maintain, it will become safer,” he explains, emphasizing the correlation between community stability and safety.

Commitment to Diversity and Inclusion

Carter’s influence extends beyond Avanath; he is a founding member of the Real Estate Executive Council (REEC), which aims to increase opportunities for Black and LatinX professionals in commercial real estate. As a member of the Urban Land Institute (ULI) Global Board, he actively advocates for diversity within the organization and challenges fellow board members to improve their companies’ diversity metrics.

His commitment to diversity is not just a personal mission but a professional imperative. “It’s a key initiative of ULI,” he states, emphasizing the need for concerted efforts to promote diversity in the industry. His candid approach and willingness to speak out on these issues have made him a respected voice in the field.

Seizing Opportunities Amidst Challenges

While many in the real estate sector pulled back during the pandemic, Carter saw an opportunity. “We felt that, before the pandemic, there was a crisis in housing affordability,” he explains. Avanath capitalized on this insight, purchasing properties worth over $1 billion during the pandemic, leading to increased occupancy and performance metrics.

Carter’s strategic vision has positioned Avanath as a leader in affordable housing, with 70% of its properties located in communities of color. His gratitude for the support of colleagues in the industry is palpable. “I am incredibly blessed by the number of great colleagues I have that have embraced our mission,” he reflects.

Conclusion

Daryl Carter’s journey in the real estate industry is a testament to the power of mentorship, diversity, and community engagement. His commitment to affordable housing and uplifting the next generation of leaders serves as an inspiration to many. As he continues to break barriers and redefine success in the industry, Carter remains a pivotal figure in the ongoing conversation about diversity and inclusion in real estate. His story is not just about personal achievement; it is about creating a legacy that empowers others to follow in his footsteps.

As the industry evolves, Carter’s influence will undoubtedly shape the future of affordable housing and the broader real estate landscape, ensuring that the voices of diverse professionals are heard and valued.