AvalonBay to sell 80% interest in five Manhattan apartment communities
AvalonBay entered into an agreement to contribute its fee ownership of Avalon Morningside Park, Avalon Bowery Place I, and Avalon Bowery Place II, as well as its leasehold interest in Avalon West Chelsea and AVA High Line, to a newly formed joint venture with an institutional client of global real estate investment manager, Invesco Real Estate, in which AvalonBay will retain a 20% interest and act as the managing member and property manager for the assets. These five communities contain 1,301 apartment homes and approximately 58,000 square feet of retail space in the borough of Manhattan in New York City. The transaction is based on an aggregate asset valuation of approximately $760M and is expected to close before the end of 2018. AvalonBay intends to use the estimated net proceeds of approximately $460M from this transaction for general corporate purposes, which may include the acquisition, development and redevelopment of apartment communities.