AvalonBay Communities Agrees to Sell 80% Interest in Five Manhattan Apartment Communities
October 04 2018 - 4:15PM
Business Wire
AVALONBAY COMMUNITIES, INC. (NYSE: AVB) (the “Company”)
announced today that it 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 $760
million and is expected to close before the end of 2018.
The newly formed joint venture plans to utilize secured
financing at a loan to value ratio of approximately 50%.
AvalonBay intends to use the estimated net proceeds of
approximately $460 million from this transaction for general
corporate purposes, which may include the acquisition, development
and redevelopment of apartment communities.
Commenting on the agreement, Matt Birenbaum, AvalonBay’s Chief
Investment Officer said, “This transaction brings us closer to
achieving our long-term geographic portfolio allocation goals and
allows us to maintain our brand and operating presence in
Manhattan, while monetizing a significant portion of our investment
in these assets.”
AvalonBay plans to update its full year 2018 Projected EPS,
Projected FFO, Projected Core FFO and Established Communities’
revenue, operating expense and net operating income ranges to
reflect the expected impacts of this transaction in its third
quarter 2018 earnings release.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements, which you can identify
by the Company’s use of words such as “expects,” “plans,”
“estimates,” “anticipates,” “projects,” “intends,” “believes,”
“outlook” and similar expressions that do not relate to historical
matters, are based on the Company’s expectations, forecasts and
assumptions at the time of this release, which may not be realized
and involve risks and uncertainties that cannot be predicted
accurately or that might not be anticipated. These could cause
actual results to differ materially from those expressed or implied
by the forward-looking statements. Risks and uncertainties related
to the transaction and financing described above that might cause
such differences include the following, among others: the
availability of financing at interest rates and for amounts and
periods that are consistent with the Company’s current
expectations; the ability of the Company and other transaction
participants to obtain the regulatory and contractual approvals and
consents required to consummate the transaction on terms and within
the time period consistent with the Company’s current expectations;
and the absence of any unanticipated adverse developments,
incidents or events, or any property damage, casualty loss or
personal injury, involving any of the assets that are a part of the
transaction.
Additional discussions of risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied by the forward-looking statements appear in the Company’s
filings with the Securities and Exchange Commission, including the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2017 under the heading “Risk Factors” and under the
heading “Management’s Discussion and Analysis of Financial
Condition and Results of Operations - Forward-Looking Statements”
and in subsequent quarterly reports on Form 10-Q.
About AvalonBay Communities, Inc.
As of June 30, 2018, the Company owned or held a direct or
indirect ownership interest in 287 apartment communities containing
84,043 apartment homes in 12 states and the District of Columbia,
of which 19 communities were under development and 16 communities
were under redevelopment. The Company is an equity REIT in the
business of developing, redeveloping, acquiring and managing
apartment communities in leading metropolitan areas primarily in
New England, the New York/New Jersey Metro area, the Mid-Atlantic,
the Pacific Northwest, and the Northern and Southern California
regions of the United States. More information may be found on the
Company’s website at http://www.avalonbay.com.
About Invesco Real Estate
Invesco Real Estate is a global leader in the real estate
investment management business with $65.3 billion in real estate
assets under management, 489 employees and 21 regional offices
across the U.S., Europe and Asia (as of 06/30/18). Invesco Real
Estate has been actively investing in core, value-add and
opportunistic real estate strategies since 1992. Invesco Real
Estate is a business name of Invesco Advisers, Inc., an indirect,
wholly owned subsidiary of Invesco Ltd. Invesco Ltd. is an
independent investment management firm dedicated to delivering an
investment experience that helps people get more out of life. NYSE:
IVZ; www.invesco.com.
Copyright © 2018 AvalonBay Communities, Inc.
All Rights Reserved
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AvalonBay Communities, Inc.Jason ReilleyVice PresidentInvestor
Relations703-317-4681
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