AvalonBay Communities 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.
The transaction is based on an aggregate asset valuation of approximately $760 million and is expected to close before the end of 2018.
AvalonBay will retain a 20 percent 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 newly formed joint venture plans to utilize secured financing at a loan to value ratio of approximately 50 percent.
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.”
