Invesco buys 80% stake in Manhattan apartment portfolio

Invesco Real Estate has acquired an 80 percent stake in five Manhattan apartment properties with 1,301 units in a deal valuing the properties at $760 million.

The seller AvalonBay will retain a 20 percent interest.

Portfolio consists of Avalon Morningside Park, Avalon Bowery Place I, and Avalon Bowery Place II, as well as of its leasehold interest in Avalon West Chelsea and AVA High Line.

In connection with the preparation and formation of the joint venture and the contribution of assets to it, the following occurred:

• AvalonBay repaid approximately $194 million of variable rate mortgage notes secured by Avalon Bowery Place I and Avalon Morningside Park, which had a weighted average interest rate of 3.8 percent as of Sept. 30, 2018.
• The newly formed joint venture originated approximately $396 million of secured financing at a weighted average interest rate of 3.9 percent.
• AvalonBay received net proceeds of approximately $470 million from the transaction.

The five communities included in this transaction will not be consolidated by AvalonBay for financial reporting purposes for the period ending Dec. 31, 2018.