AvalonBay Sells Asset

AvalonBay Communities, Inc. (AVB - Analyst Report), a leading real estate investment trust (REIT), has recently sold its 171-unit apartment complex in Quincy, Massachusetts for $27.2 million to CB Richard Ellis Investors, a global real estate investment management firm. 

The apartment complex, called ‘Faxon Park’, is 100 leased and includes various amenities like clubhouse, swimming pool, and playground. The property offers an ideal location for easy commute to Boston and other surrounding communities. 

CB Richard intends to upgrade the property and renovate common areas before utilizing it for commercial/residential purposes. AvalonBay’s portfolio has held up better than its peers in an economic downturn due to its assets in infill supply-constrained areas where new apartment construction activity is very limited. 

The company has Class A assets located in premium markets, such as Washington DC, New York City, and San Francisco, where the spread between renting and owning is still high despite home price declines. AvalonBay primarily focuses on developing high-quality, multi-family apartment communities for higher-income clients in high barrier-to-entry regions of the U.S. 

As of Jun 30, 2009, the company owned or held ownership interests in 174 apartment communities, with 50,511 apartment homes in 10 states in the U.S. and the District of Columbia, including 12 communities under construction and 7 under redevelopment.